[Bitcoin Now] Falls to 34 Million Won Range... Some Institutions Also Turning Away

Ethereum also once dropped to around 1.3 million KRW
World's largest asset manager BlackRock changes stance to oppose Bitcoin futures

Photo by Getty Images Bank

[Asia Economy Reporter Gong Byung-sun] As Bitcoin, the representative virtual currency (cryptocurrency), which was in the 35 million KRW range the previous day, fell to the 34 million KRW range, experts have raised concerns that Bitcoin could completely collapse. Some institutions have also turned negative on Bitcoin.

According to the domestic cryptocurrency exchange Upbit, as of 10:58 AM on the 28th, Bitcoin was recorded at 34.78 million KRW, down about 2.4% compared to 24 hours earlier. In the early morning, it even dropped twice to the 33 million KRW range.

Experts have raised the possibility of a sharp decline in cryptocurrencies. According to Bloomberg, Augustin Carstens, General Manager of the Bank for International Settlements (BIS), said in a speech at the Hoover Institution on the 27th (local time), "Bitcoin could completely collapse," pointing out that "as it approaches the maximum supply, its structure becomes vulnerable to multiple attacks." He added, "If digital currencies are issued, it must be through central banks," emphasizing that "soundly issued money is at the center of the market economy."

Scott Minerd, Chief Investment Officer of Guggenheim Partners, a U.S. investment firm, explained in an interview with Bloomberg on the 27th (local time), "There is no demand from institutional investors to maintain the current Bitcoin price range," and "the overall investor base for cryptocurrencies is weak."

Accordingly, the perspective of institutions toward cryptocurrencies has also begun to change. BlackRock, the world's largest asset management company, reversed its position just one week after selecting Bitcoin futures as an eligible investment. According to Bloomberg on the 27th (local time), Larry Fink, CEO of BlackRock, said, "Bitcoin is still an unproven asset," and "compared to other assets, its category is small."

On the other hand, there are opinions that the outlook for cryptocurrencies is bright due to financial decentralization. Anthony Scaramucci, co-founder of SkyBridge Capital, said in an interview with Bloomberg on the 27th (local time), "The rise in GameStop's stock price, led by U.S. retail investors, signifies financial decentralization," adding, "This is also evidence that Bitcoin works." On that day, GameStop's stock closed at $347.51, up 134.84% from the previous day. Individual investors opposing hedge fund short selling gathered opinions on social networking services (SNS) and responded with buying pressure, causing prices to rise and resulting in significant losses for hedge funds.

Meanwhile, at the same time, Ethereum recorded 1.425 million KRW, down about 2.8% compared to 24 hours earlier. Although it fell to the 1.3 million KRW range at 9:14 AM that day, it recovered to the low 1.4 million KRW range within about 20 minutes.