[Bitcoin Now] Weakness Amid News of Strengthened European Anti-Money Laundering Regulations

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are showing a downward trend as the European Parliament approved a draft bill to extend anti-money laundering (AML) requirements to cryptocurrencies.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:50 AM on the 1st, Bitcoin was priced at $45,264 (approximately 55.07 million KRW), down 3.39% from the previous day. At the same time, the price aggregated by the domestic cryptocurrency exchange Upbit was 55.01 million KRW, down 0.63% (347,000 KRW) from the previous day.

Bitcoin prices declined following news that the European Parliament would extend AML regulations, which apply to payments over 1,000 euros (approximately 1.34 million KRW), to cryptocurrencies. On the 31st of last month (local time), the European Parliament approved a draft bill containing these provisions. If passed, identity verification will be required for transfers to non-custodial cryptocurrency wallets. Transfers to cryptocurrency service providers operating without approval within the European Union (EU) will also be halted. Cryptocurrency-focused media CoinDesk reported that "Bitcoin prices dropped about 2% within minutes after the vote."

Additionally, the U.S. Department of Commerce's release of the February Personal Consumption Expenditures (PCE) price index, which rose 6.4% year-over-year, is also considered to have influenced the market. Inflation concerns may dampen Bitcoin investment sentiment. The core PCE for February, excluding volatile food and energy prices, increased 5.4% year-over-year, marking the highest rise since April 1983.

Furthermore, there is analysis suggesting a lack of positive factors to drive Bitcoin prices upward at present. Edward Moya, senior market analyst at global investment firm OANDA, explained, "The momentum driving Bitcoin's bullish trend has been exhausted," adding that ongoing geopolitical risks from the conflict between Russia and Ukraine could prevent a rally.

Meanwhile, the digital asset Fear & Greed Index operated by Dunamu, the operator of Upbit, recorded 59.69, indicating a 'neutral' stage. This is a decrease of 1.00 from the previous day's 60.68 ('greed'). Dunamu's digital asset Fear & 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 buying interest among market participants, whereas a shift toward fear reflects concerns about asset declines, leading to market exits and subsequent price drops.