[Bitcoin Now] Drops to 35 Million Won in a Day... Ethereum Also Falters

The Day Before: Sharp Drop from 38 Million KRW to 35 Million KRW... Ethereum Also in Decline

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[Asia Economy Reporter Gong Byung-sun] Bitcoin, the leading virtual currency (cryptocurrency), which recorded around 38 million KRW the previous day, plummeted to the 35 million KRW range in just one day.

According to the domestic cryptocurrency exchange Upbit, as of 2:20 PM on the 26th, Bitcoin was priced at 35,601,000 KRW, down about 3% compared to 24 hours earlier. It had risen to the 38 million KRW range at 10:30 PM the previous day but fell to the 35 million KRW range within a day.

Experts' forecasts on Bitcoin are divided. The overseas cryptocurrency media CryptoGlobe predicted on the 24th (local time) that Bitcoin would reach $100,000 (about 110 million KRW) by the end of this year. Anthony Pompliano, co-founder of cryptocurrency asset management firm Morgan Creek, said in an interview with CryptoGlobe, “If held long-term, Bitcoin will eventually rise to $100,000,” adding, “I do not worry about short-term volatility.”

On the other hand, JP Morgan predicted that reaching $40,000 for Bitcoin would be difficult. According to Bloomberg in the U.S., on the 25th (local time), a JP Morgan official stated, “The inflow of funds into Grayscale’s Bitcoin trust product, a U.S. asset management firm, has already peaked for four consecutive weeks based on the average,” and diagnosed, “With the current institutional fund flow, it is difficult to surpass $40,000.”

Meanwhile, Ethereum also recorded 1.49 million KRW, down about 4% compared to 24 hours earlier at the same time. It had risen to the 1.6 million KRW range the previous day but dropped to the 1.4 million KRW range.

Nevertheless, investors’ interest is focused. Cryptocurrency specialized foreign media CoinDesk reported on the 25th (local time) that the number of Ethereum held by exchanges has decreased. Over the past four days, more than one million Ethereum have been traded, leading to a shortage in supply. Famous cryptocurrency analyst Alex Kr?ger explained in an interview with CoinDesk, “When supply decreases, prices tend to rise.”

There is also a view that Ethereum is growing and separating from Bitcoin. According to CoinDesk, the correlation between Bitcoin and Ethereum over the previous 90 days was 0.86 on the 24th (local time), but it dropped to 0.66 on that day. The closer the correlation is to 0, the more opposite the movements are.

Opinions are also emerging that Bitcoin’s market dominance has weakened. Cryptocurrency specialized foreign media BeinCrypto reported on the 25th (local time) that Bitcoin’s market share is the lowest since September last year. Ethereum surpassed 1.6 million KRW that day, causing Bitcoin’s market dominance to fall from 70% to 62.5%. According to CoinMarketCap, which broadcasts global cryptocurrency market conditions, Bitcoin’s market capitalization was about 6.24 times that of Ethereum on the 25th of last month, but it has decreased to about 3.98 times this month.