[Bitcoin Now] Russia's Occupation of Ukraine Nuclear Plant Causes Decline... Falls Below $39,000

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As geopolitical risks escalate with Russian forces occupying the Zaporizhzhia nuclear power plant in Ukraine, the price of the representative cryptocurrency Bitcoin has sharply declined.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 1:25 PM on the 5th, Bitcoin was trading at $38,951 (approximately 47.42 million KRW), down 5.78% from the previous day. The $39,000 level was breached for the first time since the 28th of last month.

Bitcoin prices fell on the 4th (local time) as Russian forces took control of the Zaporizhzhia nuclear power plant in Ukraine, raising concerns about nuclear threats. Zaporizhzhia, the largest nuclear power plant in Europe, holds 6 of the 15 reactors operating in Ukraine. Additionally, the US Nasdaq index, which is technology stock-centered and has recently shown synchronization with Bitcoin prices, also declined. On the 4th, the Nasdaq index closed down 224.50 points (1.66%) at 13,313.44.

Meanwhile, as of 1:23 PM on the same day, Dunamu, the operator of Upbit, reported its Digital Asset Fear and Greed Index at 36.65, indicating a 'Fear' stage. This is a decrease of 5.02 compared to 41.67 (Neutral) a week ago. Dunamu's Digital Asset Fear and Greed Index is divided into stages: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. A greed direction indicates increased interest in buying by market participants, whereas moving toward fear reflects a fear of asset decline, leading to market exits and a chain reaction of price drops.