[Bitcoin Now] Returns to $31,000 Range as China Eases COVID Lockdown

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Major cryptocurrency Bitcoin surged more than 7%, marking its largest increase in two months and returning to the $31,000 range. This is attributed to the simultaneous rise in major global stock markets following China's announcement to lift COVID-19 lockdowns.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:28 AM on the 31st, Bitcoin's price rose 7.31% from the previous day to $31,561 (approximately 39,214,000 KRW), returning to the $31,000 level for the first time since the 16th. Bitcoin had fallen from $37,600 to the $29,000 range earlier this month due to the Luna crash incident.

Cryptocurrency specialized media CoinDesk cited China's easing of COVID-19 lockdowns as the reason behind Bitcoin's sharp rise. Chinese authorities will essentially lift the lockdown in Shanghai starting next month on the 1st and promote a "comprehensive normalization." Expectations of China's easing of restrictions led major global stock markets to close higher. On the 30th, the KOSPI closed up 1.20% at 2,669.66, and the Nikkei 225 index rose 2.19% to close at 27,369.43. European markets also ended higher, with Germany's DAX 30 index closing at 14,575.98, up 0.79%, and France's CAC 40 index closing at 6,562.39, up 0.72%. The positive momentum in major stock markets is believed to have had a favorable impact on the cryptocurrency market as well.

However, it is uncertain how long this upward trend will continue. Marcus Sotiriou, a researcher at GlobalBlock, a digital asset brokerage firm, said, "Since the U.S. stock market has already rebounded following Federal Reserve Chairman Jerome Powell's speech affirming the commitment to curb inflation, the relief rally in the cryptocurrency market is quite delayed." He analyzed, "Although Bitcoin has surpassed $30,000, it needs to maintain the $29,300 level to sustain the upward momentum."

Terraform Labs' newly issued Luna (Luna 2) is also rising sharply. At the same time, Luna is trading up 62.40% at $9.24 (approximately 11,460 KRW). Trading volume has also increased by 223.44%, reaching $470 million. Since Luna was listed on overseas cryptocurrency exchanges on the 28th, both its price and trading volume have shown significant changes.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, the operator of the domestic cryptocurrency exchange Upbit, recorded a "neutral" level at 40.75 on the day. This is a decrease of 1.50 from the previous day's 42.25 (neutral). Compared to a week ago's 31.30 (fear), it dropped by 9.45. Dunamu's Digital Asset Fear & Greed Index is divided into stages of '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 among market participants, whereas moving toward fear reflects a growing fear of asset decline, leading to market exits and a chain reaction of price drops.