[Bitcoin Now] Breaking Free from China-Related Negative Factors... Slight Rebound to 52 Million KRW Range

Adapting to Repeated Chinese Regulations in the Cryptocurrency Market

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin slightly rebounded to the 52 million KRW range. Despite negative news from China, which strongly regulates the cryptocurrency market, it is interpreted as gradually recovering.

According to the domestic cryptocurrency exchange Upbit, as of 8:15 PM on the 27th, Bitcoin recorded 52.93 million KRW, up 0.26% compared to the previous day. The day before, Bitcoin had fallen to 50.8 million KRW but rebounded again.

The cryptocurrency market appears to be recovering from the shock of China’s cryptocurrency regulations. According to the US economic media CNBC on the 24th, the People's Bank of China stated, “Recently, cryptocurrency promotion activities have been rampant, disturbing financial order and encouraging crime,” and “Cryptocurrencies should not circulate as currency in the market, so all related activities are defined as illegal.” Furthermore, they added that all individuals trading cryptocurrencies will be punished.

As a result, the cryptocurrency market was greatly shaken. On the 24th, Bitcoin recorded 50.9 million KRW, dropping sharply by 4.11% in one day. Altcoins such as Ethereum, Bitcoin Cash, and Litecoin also fell by 6.52%, 6.51%, and 6.61%, respectively.

However, the industry interprets that the cryptocurrency market is adapting as China’s regulations are repeated. On the 27th, Han Dae-hoon, a researcher at SK Securities, stated in a report, “This announcement from China is not the first, and cryptocurrency trading has already been banned,” adding, “Although judicial authorities’ involvement has strengthened legal binding force, there is nothing significantly new.” Additionally, the researcher explained, “At one time, Chinese exchanges such as Huobi and OKEx accounted for 30% of global cryptocurrency trading, but now it is at the 10% level,” and “Due to strong regulations by authorities, 90% of cryptocurrency mining companies in China have already been shut down or relocated overseas.”