[Bitcoin Now] Plummets to 35 Million Won Range... "Investors Realizing Losses"

Analysis Shows Investors Who Bought at All-Time Highs Realizing Losses
US Treasury to Announce Stablecoin Regulation Recommendations Within Months

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has plummeted to the 35 million KRW range. This decline is interpreted as a reaction to financial authorities, led by the U.S. Treasury Department, moving to regulate stablecoins.

According to the domestic cryptocurrency exchange Upbit, as of 2:56 PM on the 20th, Bitcoin recorded 35.34 million KRW, down 3.95% from the previous day. This is the first time Bitcoin has fallen below 36 million KRW since the 22nd of last month. It even dropped to 35.17 million KRW at 12:54 PM on the same day.

As Bitcoin falls, the number of investors realizing losses is increasing. On the 19th (local time), cryptocurrency analytics firm Glassnode explained in a report, "Most of the recent Bitcoin trading volume is occurring as investors who bought at the all-time high are realizing losses." The all-time high for Bitcoin is 81.99 million KRW. Additionally, Glassnode analyzed that the average daily realized loss this week was $353 million (approximately 406.5148 billion KRW), while the average profit was only $158 million.

This price decline is interpreted as a result of regulatory moves by U.S. financial authorities. According to U.S. economic media Bloomberg on the 19th, Janet Yellen, U.S. Treasury Secretary, urged at a presidential financial market working group meeting that "new regulations to monitor stablecoins should be reviewed promptly." The Treasury Department stated in a press release after the meeting, "The meeting discussed the rapid growth of stablecoins, their potential as a means of payment, and potential threats to the financial system and security," adding, "Recommendations will be announced within a few months." The meeting was attended by Secretary Yellen, Jerome Powell, Chair of the U.S. Federal Reserve (Fed), and Gary Gensler, Chair of the Securities and Exchange Commission (SEC), among others.

Stablecoins are cryptocurrencies pegged to fiat currencies such as the dollar, exhibiting less volatility compared to other cryptocurrencies. However, concerns have been raised that if a large number of people attempt to withdraw fiat currency linked to stablecoins simultaneously, it could lead to a payment default situation similar to a bank run. Currently, stablecoins are not clearly regulated regarding the use of the stored dollars.

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