[Bitcoin Now] 7% Surge Followed by 5% Plunge Rollercoaster

Investors Moving Between Heaven and Hell
Weakness as US Nasdaq Falls
Recent Synchronization Phenomenon

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the leading cryptocurrency, is showing a rollercoaster trajectory. It plunged about 5% just a day after rising by over 7%.

According to the domestic cryptocurrency exchange Upbit on the 11th, as of 8 a.m., the price of Bitcoin recorded 49.02 million KRW, down 5.15% (2.66 million KRW) from the previous day. The aggregated price on the global cryptocurrency market tracking site CoinMarketCap was 39,509 USD (approximately 48.56 million KRW), down 5.83% compared to the previous day.

As the price fell, trading volume also showed a declining trend. According to CoinMarketCap, the 24-hour Bitcoin trading volume was 31.055777742 billion USD (approximately 38.1893 trillion KRW), down 3.31% from the previous day.

Bitcoin prices weakened as the U.S. Nasdaq index, centered on tech stocks, declined. Recently, a synchronization phenomenon has appeared between Bitcoin prices and the Nasdaq index. On the 10th (local time), the Nasdaq index closed down 128.58 points (0.95%) at 13,129.96. The Nasdaq index fell influenced by the U.S. February Consumer Price Index (CPI) soaring 7.9% year-on-year, marking the largest increase since January 1982. Additionally, the fact that the foreign ministers of Russia and Ukraine met in Turkey for negotiations but failed to find any significant resolution is also analyzed to have contributed to the Nasdaq index decline.

Recently, Bitcoin prices have been fluctuating sharply. The over 7% rise the previous day was influenced by U.S. President Joe Biden issuing an executive order directing research on cryptocurrencies and the formulation of specific national policies related to them. This executive order is expected to establish the first digital asset strategy at the federal government level in the United States.

On the 1st of this month, Bitcoin surged more than 10%. The price, which had been around 46 million KRW, suddenly soared to over 52 million KRW. This was influenced by Russian buyers entering the market after the U.S. and Western European countries decided to exclude Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment network, causing the ruble to plunge nearly 30% due to economic sanctions. At that time, the world’s largest cryptocurrency exchange Binance announced it would not freeze Russian users’ cryptocurrency accounts, and sanctions on wallets storing cryptocurrencies were difficult to enforce, which also increased demand. The Bitcoin price that rose like this fell again due to geopolitical risks. On the 5th of this month, when Russian forces occupied the Zaporizhzhia nuclear power plant in Ukraine, raising nuclear threat concerns, the price dropped 6.2%.

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