[Bitcoin Now] Sideways Movement Around $30,000... "No Significant Drop Expected for the Time Being"

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The price of the leading cryptocurrency Bitcoin is hovering around the $30,000 mark.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:38 AM on the 7th, the price of Bitcoin was $29,895 (approximately 37.55 million KRW), down 2.10% from the previous day.

Bitcoin's price has been moving sideways around the $30,000 level after recovering the $30,000 mark the day before. Bitcoin saw a surge in bargain buying the previous day, regaining the $30,000 level for the first time in three days, but recorded a slight decline on this day. Cryptocurrency specialized media CoinDesk forecasted that Bitcoin's price is unlikely to experience a significant drop in the near term.

Greg King, CEO of Osprey Funds, a cryptocurrency asset management firm, analyzed that "Bitcoin's price seems to be forming a bottom." He pointed out that unlike the major crashes in Bitcoin prices in 2013 and 2018, the recent price weakness is differentiated by the presence of institutional investors. Bitcoin's price has fallen about 60% from its peak near $70,000 in November last year. CEO Greg explained, "Institutional investors are buying the dip," adding, "Assets like Bitcoin and gold are holding up relatively well in terms of returns."

There is also a forecast that the correlation between the stock market and cryptocurrencies will reverse. CEO Greg said, "If the uncertain macro environment continues along with interest rate hikes and stock price declines, cryptocurrencies will emerge as a relatively safe haven," but he added, "The long-term correlation will not be significant."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 34.70 on this day, indicating a 'Fear' stage. This is down 5.51 from 40.22 (Neutral) the previous day. Compared to 41.30 (Neutral) on the 31st of last month, a week ago, it dropped by 6.60. 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)'. The greed direction indicates increased interest in buying by market participants, whereas moving toward fear indicates a fear of asset decline causing market exits and a chain reaction of price drops.