'Bitcoin Approaching 100 Million Won'... Historic 15-Year High, Beware of Rollercoaster Market [Bitcoin Now]

Around 91 Million Won... Approaching the 100 Million Won Mark

[Image source=Yonhap News]

The price of Bitcoin surpassed the 90 million KRW mark last week, approaching the '100 million KRW milestone.' This is the highest level since Bitcoin first appeared 15 years ago. As Bitcoin's price hits a historic high, market volatility has also increased. Given that this year's 'rollercoaster market' with high volatility is expected to continue, investors are advised to exercise caution.

According to the global virtual asset market tracking site CoinMarketCap, as of 12:20 PM on the 10th, the current price of Bitcoin is 91.03 million KRW, up 0.95% from the previous day. Compared to the previous week, it rose 11.49%, and compared to one year ago, it increased by 244.15%.

On the morning of the 5th, Bitcoin's price reached 91.7 million KRW, breaking through the 90 million KRW barrier in one leap. Surpassing $70,000 is the first time in 15 years since Bitcoin's emergence in 2009. After hitting a record high, profit-taking sales flooded the market, causing the price to plummet to the 82 million KRW range on the 6th, but it gradually rebounded and steadily rose until the 10th, recovering the 90 million KRW level.

It is believed that the price increase was led by the Bitcoin spot Exchange-Traded Fund (ETF) listed on the U.S. stock market. The U.S. economic media CNBC analyzed on the 8th (local time) that with the introduction of the spot Bitcoin ETF in the U.S., large movements tend to occur in the virtual asset market during traditional stock market opening hours.

It is observed that the number of investors betting on expectations of a U.S. interest rate cut has increased. CNBC analyzed on the 8th (local time) that with the release of the U.S. employment report for February, expectations grew that the Federal Reserve (Fed) might start cutting interest rates late this year. This is because the employment growth rate slowed and the unemployment rate increased. According to the U.S. Department of Labor, nonfarm payrolls increased by 275,000 in February compared to the previous month, exceeding the market estimate of 200,000. However, the January employment figures were significantly revised downward from 353,000 to 229,000, and the February unemployment rate rose by 0.2 percentage points to 3.9% compared to the previous month. The unemployment rate is the highest in 2 years and 1 month since January 2022.

Market volatility is expected to increase further. Anthony Trenchev, co-founder of the virtual asset exchange Nexo, told CNBC, "The sharp sell-off of Bitcoin last Tuesday (the 5th) was a healthy and necessary move, a precursor to further gains," adding, "Volatility means a bullish market for Bitcoin. This year, unexpected sharp drops of 10-20% will be frequent."

General investors need to be cautious. According to the virtual asset data provider Alternative, as of the 10th, the Fear & Greed Index, which measures investor sentiment, stands at 79 points (extreme greed). Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to 100 points, indicating optimism.