[Bitcoin Now] Decline Following Temporary Suspension of Deposits and Withdrawals by Coin Brokerage Firms

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the leading cryptocurrency, is showing weakness following news that digital asset brokerage Voyager Digital will temporarily suspend deposits and withdrawals.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 2:36 PM on the 2nd, Bitcoin was priced at $19,251 (approximately 24.99 million KRW), down 0.96% from the previous day.

Bitcoin prices have been declining since Voyager Digital announced on the 1st (local time) that it would temporarily suspend customer trading, deposits, withdrawals, and rewards. According to the U.S. economic media CNBC, Stefan Ehrlich, CEO of Voyager Digital, stated, "It was very difficult, but considering the current market situation, we believe it is the right decision. This decision was made because time was needed to prepare strategic alternatives with various stakeholders. Additional information will be provided at an appropriate time."

This decision appears to be a consequence of the cryptocurrency investment hedge fund Three Arrows Capital (3AC) failing to repay Voyager Digital $350 million (approximately 454.3 billion KRW) worth of the stablecoin USDC and 15,250 Bitcoins. 3AC recently faced a liquidity crisis amid the cryptocurrency market downturn and was declared bankrupt by the British Virgin Islands court on the 27th of last month.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded a level of 24.08 on the same day, indicating a 'Fear' stage. This is an increase of 1.47 from 22.61 (Fear) the previous day. However, compared to 34.43 (Fear) on the 25th of last month, a week ago, it has dropped by 10.35. 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)'. The greed direction indicates increased interest in buying among market participants, whereas moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.