Rebounding Cryptocurrency Market... Bitcoin Pauses at Around 51 Million Won
Cathie Wood, CEO of Ark Investment, "Now a Good Time to Buy the Dip Amid Sharp Decline"
Continued Concerns Over Extreme Volatility of Cryptocurrency
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[Asia Economy Reporter Gong Byung-sun] The cryptocurrency market, which experienced a sharp crash on the 19th, is rebounding. The leading cryptocurrency, Bitcoin, remains in the 51 million KRW range.
According to the domestic cryptocurrency exchange Upbit, as of 6:58 AM on the 21st, Bitcoin recorded 51.11 million KRW, up 1.46% from the previous day. Although it dropped to 42.59 million KRW during trading on the 19th, it has since rebounded and is maintaining the 51 million KRW level.
Altcoins have also rebounded. Ethereum recorded 3.56 million KRW, up 6.27% from the previous day at the same time. Ontology Gas showed the largest increase, with a rise of over 80%. This is the exact opposite trend from the 30% declines seen in many cryptocurrencies on the 19th.
The cryptocurrency market appears to have rebounded due to a low-price buying trend. According to the U.S. economic media Bloomberg TV, Cathie Wood, CEO of Ark Investment, said, "Now that cryptocurrency prices have plummeted, it is a good time to buy at low prices," and added, "Bitcoin will rise to $500,000 (approximately 566.25 million KRW)."
Accordingly, Bitcoin-related stocks also rose. As of the 20th, MicroStrategy, the private company holding the most Bitcoin, rose 3.91%. Tesla, which also holds Bitcoin, increased by 4.1%. Coinbase, a cryptocurrency exchange listed on Nasdaq on the 14th of last month, closed the day up 3.83%.
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However, concerns about cryptocurrency volatility have been raised. UBS Global Asset Management pointed out in a report that "cryptocurrencies, including Bitcoin, have high volatility and cannot reliably store value," and "only a very small number of companies accept cryptocurrencies as a payment method." UBS Global Asset Management also emphasized, "Since the correlation between Bitcoin and risky assets like stocks has increased, there is no reason to include Bitcoin in investment portfolios," and stated, "Bitcoin is merely a speculative asset."
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