Bitcoin Crashes Below 100 Million Won Mark, Market Anxiety Intensifies Amid Sharp Decline

South Korea - Ekhbary News Agency

Bitcoin Crashes Below 100 Million Won Mark, Market Anxiety Intensifies Amid Sharp Decline

The domestic virtual asset market is sending shockwaves through investors as Bitcoin's price has fallen below the 100 million Korean won threshold, a level widely considered a critical psychological support. As of the morning of February 6, Bitcoin continues its steep decline, recording its lowest price in the Korean won trading market in 1 year and 4 months. This is interpreted not merely as a simple price drop, but as a clear indicator of the unstable sentiment pervading the virtual asset market.

On the virtual asset exchange Upbit, one Bitcoin is currently trading at approximately 93 million won as of 7:30 AM, representing a sharp 13.8% decrease compared to the previous day. This level is even lower than the intraday low of 94.32 million won recorded on October 25, 2024, effectively erasing all gains made since Donald Trump's election as U.S. President in early November of the same year. After breaking the 100 million won mark around 1:50 AM on this day, Bitcoin has continued its downward trend without showing signs of recovery, falling below 100 million won for the first time since November 6, 2024.

Bitcoin's decline has directly impacted top-tier altcoins by market capitalization. Ethereum, the second-largest cryptocurrency, plummeted 14.8% from the previous day to 2.7 million won, marking its lowest price since the intraday low of 2.56 million won recorded on May 8 last year. Other major altcoins, such as Ripple (XRP) which crashed 23.5% to 1,707 won, and Solana which fell 15.6% to 115,000 won, all recorded double-digit percentage drops, reflecting the widespread fear gripping the market.

Analysis suggests that a complex array of factors is behind this sharp decline. Kim Min-seung, head of Korbit Research Center, stated that "the 'hawkish' stance (favoring monetary tightening) of Kevin Warsh, the U.S. Federal Reserve chairman nominee, was immediately reflected in market prices." Warsh's hawkish tendencies exacerbate concerns about maintaining high interest rates and reducing liquidity, which, according to Kim, places significant pressure on risk assets like Bitcoin. Generally, interest rate hikes tend to make risk assets such as stocks and cryptocurrencies relatively less attractive and absorb market liquidity, thereby dampening investor sentiment.

Furthermore, U.S. Treasury Secretary Scott Bessent's comment earlier this month that "the Treasury Department has no authority to instruct banks to buy Bitcoin" also acted as a negative catalyst. Such remarks dismissed any possibility of direct U.S. government support or intervention in virtual assets, lowering expectations for institutional investor entry. Regulatory uncertainty remains a chronic issue in the virtual asset market, and this instance once again demonstrates how statements from government officials can significantly influence market direction.

Kim stated that current investor sentiment is "extremely cold, and spot trading volume is low," conveying the constricted atmosphere of the market. This suggests that investors are maintaining a wait-and-see attitude and are not actively engaging in trading. However, he added that "there is a possibility that funds seeking entry points will increase as prices approach the bottom," hinting that long-term investors might look to buy at lower prices. These remarks leave a glimmer of hope for a market rebound, indicating that some investors are still looking for opportunities even in a downturn.

This sharp decline in Bitcoin and major altcoins has once again confirmed the profound impact of changes in the global macroeconomic environment, particularly the monetary policy stance of the U.S. Federal Reserve and the regulatory approach of major governments towards virtual assets. Investors are advised to remain vigilant regarding these external factors and adopt a cautious approach for the foreseeable future. The virtual asset market continues to harbor high volatility and can experience significant movements at any time due to unpredictable external variables.

Ekhbary News Agency