[Bitcoin Now] Recovering to 62 Million Won Range... Diverging Forecasts

Institutional Investment Demand Slows VS Bull Market Expected to Continue

On the morning of the 26th, the real-time Bitcoin price is displayed on the price electronic board at Bithumb Gangnam Center, a domestic cryptocurrency exchange located in Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] As the leading cryptocurrency Bitcoin rebounded to the 62 million KRW range, experts were divided between optimistic and pessimistic views regarding the future of the cryptocurrency market.

According to the domestic cryptocurrency exchange Upbit, as of 2:54 PM on the 26th, Bitcoin recorded 62.62 million KRW, up 4.62% compared to the previous day. It had fallen to 54.96 million KRW on the 23rd but has since recovered.

Experts are divided on the future of cryptocurrencies. According to the US economic media Bloomberg on the 23rd (local time), Nikolaos Panigirtzoglou, investment strategist at the US major investment bank JP Morgan, said, "Demand from institutional investors has slowed during the recent downturn," adding, "I am not sure how this demand can be stimulated going forward." However, Ulrik Lyng, Managing Director of the cryptocurrency-specialized hedge fund ARK36, observed, "The market showed signs of overheating throughout this month, and the current correction was somewhat expected," and "Since it only dropped about 25% from the peak, the overall bullish trend will continue."

Opinions also differed on the impact of US President Joe Biden's tax increase plan on the cryptocurrency market. On the 22nd, when the Biden administration announced plans to raise the top capital gains tax rate from the existing 20% to 39.6%, there was an interpretation that the cryptocurrency market was shaken. On the 23rd, Jim Cramer, a famous host of the US economic media CNBC, said, "Since it only affects the top 0.3%, the market will not be shaken," and "There is no need to worry too much." On the other hand, Tim Draper, investment manager at US venture capital Draper Associates, said, "Taxes reduce the motivation to make money, which ultimately decreases the productivity of the market."

Meanwhile, due to recent volatility, the rating of cryptocurrency-related products has been downgraded. According to the US Wall Street Journal (WSJ) on the 25th, US fund rating agency Morningstar downgraded the rating of the financial product 'Banking Finance Fund' managed by asset management company Emerald Advisors. Morningstar pointed out that the Banking Finance Fund increased its risk by investing 23% of its assets in cryptocurrency-related products and companies as of February. Last year, the Banking Finance Fund invested in cryptocurrency funds, the exchange 'Voyager Digital,' and 'Galaxy Digital Holdings,' which provides related financial services.

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