'Warnings Are Useless' Bitcoin Hits New High Again [Correspondent Diary]

Bitcoin Hits New High Again Despite Warnings from Yellen and Musk
US Media Highlights Regulatory Possibility, Urges Policy Reflection

[Image source=EPA Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Despite repeated warnings, the virtual asset Bitcoin price has once again reached an all-time high.

On the 21st (local time) afternoon in New York, the Bitcoin price surpassed $58,000. Bitcoin's upward trend has not subsided even after it first surpassed a market capitalization of $1 trillion on the 19th. Ethereum's price showed a slight correction after breaking through $2,000.

Bitcoin briefly corrected after Tesla CEO Elon Musk mentioned the day before that "Bitcoin and Ethereum prices seem high," but the upward trend continued.

Musk, also known as 'Papa Musk,' has earned the trust of Bitcoin supporters. Every time he made remarks related to Bitcoin, the Bitcoin price soared day after day. Tesla fueled Bitcoin's rise by purchasing $1.5 billion worth of Bitcoin and announcing plans to use Bitcoin as a payment method. Musk himself also disclosed that he purchased the virtual asset 'Dogecoin.' Moreover, just a day before, he made a provocative statement saying, "Only fools are not looking at (Bitcoin)."

On the 18th, Treasury Secretary Janet Yellen also issued a warning about Bitcoin. Secretary Yellen said, "There are parts that require extreme caution," indicating concerns about Bitcoin's rise. She also emphasized the need for measures to protect investors.

Yellen's remarks came after major U.S. financial firms and investment institutions such as Mastercard, Bank of New York Mellon, and BlackRock announced that they would recognize or invest in Bitcoin.

Warnings were also raised in the media.

The Washington Post (WP), in an editorial on the 21st, argued that the Federal Reserve (Fed) and regulatory authorities need to review the impact of Bitcoin on fiscal and monetary policy.

WP pointed out that while the Fed is obsessed with the proposition of job creation through monetary policy, those who could not find appropriate investment instruments flocked to speculative Bitcoin.

This is based on concerns that if funds continue to flow into speculative assets such as Bitcoin, there could be serious effects on fiscal and monetary policy.

Bitcoin investment is increasingly emphasizing the need for regulation even within the United States. Institutional investors and individuals have driven up Bitcoin prices, but regulatory authorities have not kept pace with Bitcoin's rising trend. The time has come when they cannot avoid drawing the sword.

There is a possibility of facing a major crash if one joins the excessive surge late, expecting vague profits.

There is a long-standing adage in the market not to go against the Fed. The Fed is unlikely to give up this 'superpower.' Attention is focused on what answer Fed Chair Jerome Powell will provide during his testimony to the U.S. Congress this week.

This content was produced with the assistance of AI translation services.