[Bitcoin Now] Returns to 80 Million KRW After Hitting 'Peak'... Down Over 4% Compared to Last Week

Volatility Increases... Market Optimism Maintained

On the 14th, Bitcoin prices reached a historic high of approximately 98 million KRW, but returned to the 80 million KRW range within three days. Despite increased volatility, participants in the cryptocurrency market seem to maintain an optimistic view, considering the sharp rise as a natural progression.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 6 PM on the 17th, the current Bitcoin price is 88.29 million KRW, down 3.80% from the previous day. It also fell 4.81% compared to the previous week. However, it rose 28.17% compared to the previous month and is showing a 154.41% increase compared to one year ago.

Bitcoin prices first surpassed the "magical $70,000" mark on the 5th. Breaking the $70,000 barrier was the first time in 15 years since Bitcoin's inception in 2009. After maintaining an upward trend, it hit a historic high of 98.11 million KRW during trading on the 14th. However, Bitcoin prices reversed and fell below the 86 million KRW level, reaching 85.86 million KRW as of 4 PM on the 17th.

The main cause of the price drop is unknown. The market interprets it as a natural sharp decline following a rapid price surge, characteristic of the Bitcoin market. Chris Mazarac, CEO of Crypto.com, said in an interview with the US economic media CNBC on the 15th (local time), "I think it is a healthy movement," adding, "Some of the leverage accumulated in the system is being unwound." Thomas Perfumo, Chief Strategy Officer at cryptocurrency exchange Kraken, also pointed out that "Bitcoin volatility remains very low from a historical perspective in relation to the bull market."

In fact, Bitcoin prices have repeatedly experienced sharp rises and falls in the past. Bitcoin soared above $68,000 in November 2021 but dropped below $20,000 by the end of 2022, about a year later. Last year, it was sluggish until October 2023 but showed an aggressive upward trend starting at the end of the year.

The Bitcoin spot Exchange-Traded Fund (ETF) listed on the US stock market at the beginning of the year is expected to be a long-term factor that reduces the inherent volatility in the Bitcoin market. Due to the nature of ETFs as a gateway for institutional investor funds, relatively long-term investments are likely to be made.

Despite increased volatility, the cryptocurrency market is focusing on value changes due to the halving event and expanded use cases. The April halving issue is a long-term positive factor supporting prices in the first half of the year. In April, the Bitcoin block mining reward will be halved for the first time in four years. There is also anticipation that use cases will expand, as seen in El Salvador, which designated Bitcoin as legal tender in September 2021 and has implemented related policies.

However, general investors need to be cautious. According to the cryptocurrency data provider Alternative, as of the 17th, the Fear & Greed Index, which measures investor sentiment, stands at 79 points (extreme greed). Last month, it recorded 72 points. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to 100 points, indicating optimism.

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