[Bitcoin Now] Surprise Rebound Despite Ukraine Crisis... Trading Volume Up 113%

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] After Russia launched a full-scale invasion of Ukraine, the price of Bitcoin, a leading cryptocurrency that had been plummeting, rebounded. This appears to be a synchronization phenomenon with the rising trend of the U.S. Nasdaq index.

According to the cryptocurrency exchange Upbit on the 25th, as of 9:10 a.m., the price of Bitcoin was trading at 47.1 million KRW, up 0.37% (173,000 KRW) from the previous day.

Trading volume surged by more than 100% in just one day. According to the cryptocurrency market relay site CoinMarketCap, around 9:40 a.m. that day, Bitcoin's trading volume recorded $46.71378 billion (approximately 56.1267 trillion KRW), an increase of 112.8% compared to 24 hours earlier.

Until the afternoon of the previous day, Bitcoin's price on Upbit had fallen about 5%, reaching the 43 million KRW range for the first time in about a month. Russia's invasion of Ukraine and missile attacks on military and infrastructure facilities located in the capital Kyiv and other areas dragged down Bitcoin prices. Since the 16th of this month, which was pointed out as a possible date for Russia's invasion of Ukraine, Bitcoin prices have been on a downward trend.

The rebound in Bitcoin prices, breaking away from this trend, seems to be due to the influence of the U.S. Nasdaq index, which is centered on technology stocks. On the 24th (local time), the Nasdaq index closed at 13,473.59, up 436.10 points (3.34%). Although the U.S. stock market plunged in the morning, a buying spree was confirmed in the afternoon, leading to a rise centered on the Nasdaq index. Additionally, although the U.S. has pressured Russia by controlling exports of semiconductors and other high-tech products, Russian President Vladimir Putin's statement that he "does not want to damage the global economic system" is evaluated to have eased investor sentiment. Since the beginning of this year, a synchronization phenomenon has appeared between Bitcoin prices and the Nasdaq index, which is analyzed to be because risk asset preference is influenced by the fluctuations of technology stocks.

As Bitcoin prices showed an upward trend, investor sentiment also revived. The digital asset Fear & Greed Index of Dunamu, the operator of Upbit, recorded 37.01 on that day, indicating a 'Fear' stage. Although it is still in the fear stage, it is 2.11 points higher than the previous day's 34.9 (Fear). Dunamu's digital asset Fear & Greed Index is divided into stages of 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction indicates increased buying interest, while the fear direction indicates a chain exit from the market causing price declines.

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