Bitcoin Steady Around 39 Million KRW... Focus on Aftermath of Terra and Luna Incident

[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] Luna, a Korean cryptocurrency that once ranked in the top 10 by market capitalization, has shaken the global financial markets, while the domestic Bitcoin price is stabilizing in the 39 million KRW range, absorbing the shock.

As of 2:50 PM on the 15th, the price of 1 Bitcoin on the cryptocurrency exchange Upbit was 39,559,000 KRW, up 0.13% compared to 24 hours earlier. At the same time, on Bithumb, it was trading at 39,485,000 KRW, up 0.68%.

Previously, Bitcoin fell below the 40 million KRW mark for the first time in about nine months on the 11th. On the 12th, when the Luna-Terra crash became apparent, it even dropped to 37 million KRW (based on Upbit).

Until two weeks ago, Luna was trading in the 100,000 KRW range domestically and internationally, but it plummeted by more than 99%, falling to 1 KRW at one point on the 13th. Consequently, domestic exchanges such as Upbit, Gopax, and Bithumb, as well as some overseas exchanges, announced the delisting of Luna.

As the shock from the cryptocurrency market spilled over into the stock market, the KOSPI closed at 1,550.08 on the 12th, down 1.63%, marking the lowest closing level in one and a half years since mid-November 2020.

In response to this incident, the Financial Services Commission and the Financial Supervisory Service launched an emergency situation assessment. Additionally, while monitoring the legislative trends on cryptocurrencies in major countries, the authorities plan to enact a Digital Asset Basic Act next year to protect consumers.