[Bitcoin Now] Maintaining 50 Million Won Level for Two Consecutive Days... 'Gold Replacement Theory' Resurfaces

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the representative cryptocurrency, has maintained the 50 million KRW level for two consecutive days.

According to the domestic cryptocurrency exchange Upbit, as of 2:32 PM on the 5th, the price of Bitcoin was recorded at 50.96 million KRW. Bitcoin surged sharply from early morning the previous day, rising about 10% at once, surpassing 50 million KRW from the 45 million KRW range.

Bitcoin prices, which soared to the 82 million KRW range in November last year, have shown a steady decline, and on the 22nd of last month, amid growing concerns over tightening by the U.S. Federal Reserve (Fed), it was once threatened to fall below 42 million KRW.

The recent sharp rise in Bitcoin prices is analyzed as a result of revived risk asset preference sentiment, leading to an upward trend in prices. The improved performance of Amazon boosted confidence in tech stocks, which influenced the risk asset preference sentiment and raised Bitcoin prices. Amazon's sales in the fourth quarter of last year increased by 9% compared to the same period the previous year, and net profit jumped about twofold to $14.3 billion (approximately 17.15 trillion KRW).

Some argue that this sharp price surge has revived claims that Bitcoin is a safe asset that can replace gold. Dan Egan, Director of Behavioral Finance at Betterment, explained in an interview with CNBC on the 5th (local time), "In the early days, Bitcoin was seen as a channel to suddenly accumulate wealth, but recently it is closer to a 'digital gold asset' that provides a means to avoid risk in the market." He added, "Bitcoin could be an alternative to gold or precious metals," and "one should own even a small amount of Bitcoin for portfolio diversification."

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