[Bitcoin Now] Falling to 50 Million Won Range... Continuing Negative Outlook

Decreasing Trading Volume and Regulatory Risks Remain
Invesco: "Bitcoin May Fall Below $30,000 This Year"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] As the leading cryptocurrency Bitcoin has fallen to the 50 million KRW range, negative forecasts are emerging one after another. Not only is a price rebound considered difficult, but there are also predictions that it could drop to 30,000 USD (approximately 35.68 million KRW).

According to the domestic cryptocurrency exchange Upbit, as of 1:58 PM on the 18th, Bitcoin recorded 50.84 million KRW, down 1.15% from the previous day. It rebounded to 52.89 million KRW on the 15th but has been declining since. It has been somewhat sluggish this month, falling as low as 48.89 million KRW.

In this situation, experts have issued negative forecasts. According to cryptocurrency specialized media CoinDesk on the 17th (local time), Laurent Kssis, Director at CEC Capital, said, “There will be no significant rebound because institutional investors are not showing new interest,” adding, “The funds flowing into cryptocurrency exchanges and related exchange-traded funds (ETFs) are the basis for this.”

Trading volume at cryptocurrency exchanges has significantly decreased this month. According to the cryptocurrency market data site CoinMarketCap, as of the 18th, the total trading volume of the four major domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, and Korbit) was 3.6554 trillion KRW. When Bitcoin was rising in November last year, Upbit’s trading volume alone was about 18.7542 trillion KRW. This far exceeded the KOSPI trading volume of 11.1012 trillion KRW on the same day.

US investment bank UBS also gave a negative outlook on the cryptocurrency market. According to US economic media Business Insider on the 17th, UBS stated in a report, “Cryptocurrencies are losing their hedging function, and there are issues such as technical flaws and regulations,” warning that “a ‘crypto winter’ with a sharp decline in cryptocurrency prices could come in the coming years.” The Federal Reserve’s rate hikes make investors think that Bitcoin is not effective as an inflation hedge.

US investment firm Invesco also predicted that if the cryptocurrency market bubble bursts, Bitcoin could fall below 30,000 USD. Paul Jackson, a researcher at Invesco, said, “Looking at cryptocurrency-related marketing reminds me of the Great Depression of 1929,” and added, “Although it cannot be certain, if the current trend continues, it will fall below the 30,000 USD level this year.”