[Bitcoin Now] Rebounds to 62 Million Won Range... Cryptocurrency Market Calms Down

Kimchi Premium Soared to Over 12% on the 4th... Falls to 4% Range
Digital Asset Fear Index Also 'Neutral'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin rebounded to the 62 million KRW range. Investors who had expressed anxiety over the cryptocurrency crash seem to be gradually calming down.

According to the domestic cryptocurrency exchange Upbit, as of 3:10 PM on the 7th, Bitcoin recorded 62.96 million KRW, up 0.54% compared to the previous day. It also rose to 64.09 million KRW at 10:23 AM that day.

Bitcoin has shown a bearish trend since December. Bitcoin, which was in the 70 million KRW range on the 4th, crashed to 56 million KRW, dropping 20.87% compared to the 1st. This is the opposite trend to the rising trend in October. Bitcoin rose about 35.26% throughout October.

The recent weakness is presumed to be due to concerns over liquidity tightening. On the 30th of last month (local time), when Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), mentioned the acceleration of asset purchase tapering, the possibility of an early interest rate hike was also raised. If interest rates rise, the money supplied to the market is absorbed by the central bank, reducing liquidity that had been boosting asset prices.

However, the cryptocurrency market showed signs of calming down on this day. According to the cryptocurrency data site Crypprice, the kimchi premium was recorded at 4.89% at the same time. The kimchi premium refers to the price difference of Bitcoin between domestic and overseas cryptocurrency exchanges, and the higher it is, the more it indicates that domestic cryptocurrency investors’ demand has surged, causing a bubble. On the 4th, the kimchi premium soared to 12.90%.

The digital asset fear index also indicated that the cryptocurrency market is calming down. According to Dunamu, the operator of Upbit, the digital asset fear index was 41.28 at the same time, indicating ‘neutral.’ Neutral is the midpoint between ‘fear,’ where participants expect a crash, and ‘greed,’ where they anticipate a surge, located between 40 and 60 on the digital asset fear index. During the crash on the 4th, the digital asset fear index was 33.04, indicating ‘fear.’

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