Bitcoin Surpasses 60 Million Won Again as Hedge Amid Dollar Weakness...

Unlike the past when celebrities led the upward trend, the rise is now driven by its use as a hedge
Institutional investors also begin entering the cryptocurrency market

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Without the help of celebrities, the leading cryptocurrency Bitcoin has once again reached the 60 million KRW mark. This rise appears to be due to Bitcoin being recognized as a hedge against loss risks. There is also an interpretation that institutional investors showing interest in Bitcoin have established it as an investment asset.

Bitcoin recorded 62.95 million KRW at 8:20 a.m. on the 10th. On the 9th at 10:07 a.m., it rose 0.3% from the previous day to 60 million KRW, maintaining momentum as it climbed back into the 60 million KRW range for the first time in two weeks.

Recently, Bitcoin's upward trend has been driven by celebrities. In particular, Bitcoin showed significant volatility in response to comments by Elon Musk, CEO of Tesla. On the 18th of last month (local time), when Musk tweeted that "Bitcoin is almost no different from fiat currency," Bitcoin surpassed 60 million KRW for the first time.

This time, experts analyze that Bitcoin rose as it was used to hedge losses occurring in a weak dollar environment. This means that when inflation occurs due to a weak dollar, investing in Bitcoin offsets losses. On the 7th, George Ball, chairman of U.S. asset management firm Sanders Morris Harris, explained in an interview with U.S. economic media Yahoo Finance that "Bitcoin is a good hedge in a weak dollar environment." Cathie Wood, CEO of ARK Investment, also predicted on the 8th that Bitcoin would become "an asset similar to bonds."

In fact, Bitcoin is playing a hedging role against inflation. On the 8th, as concerns about inflation pushed the U.S. 10-year Treasury yield up to 1.615%, the Nasdaq closed down 310.99 points (2.41%) at 12,609.16. In contrast, Bitcoin rose about 1% during Nasdaq trading hours (11:30 p.m. to 6 a.m. Korean time) that day. Considering that the cryptocurrency market operates 24 hours, Bitcoin rose 2.86% throughout the day.

Institutional investors are also entering cryptocurrency investments. According to U.S. economic media Bloomberg on the 8th, New York Digital Investment Group, a cryptocurrency-focused investment firm, announced that it raised $200 million (approximately 227.4 billion KRW) in capital investments from institutional investors such as Morgan Stanley, New York Life, and Soros Fund Management. The largest U.S. asset management firm BlackRock also added Bitcoin futures to its investment asset list on the 18th of last month to respond to inflation.

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