Ethereum also surpassed $4,800 for the first time in history, reflecting expectations of “inflation hedges like gold”
“Bubble controversy, investment should be cautious”
Bitcoin and Ethereum, which are the first and second largest virtual currencies in global market capitalization, both set new all-time highs. This is interpreted as the effect reflecting the expectation that virtual currency will become an inflation hedge (risk hedging) like gold amid continued inflationary pressure in the global economy.
According to CoinMarketCap, a global cryptocurrency information site, Bitcoin traded at $68,530 as of 1 pm on the 9th, surpassing $68,000 for the first time ever. Thanks to the listing of the first Bitcoin exchange-traded fund (ETF) in the United States, it soared to the $66,900 level on the 20th of last month, and then again set a new high for the first time in 20 days. Bitcoin went through a correction when the $30,000 collapsed in June in the aftermath of the Chinese government’s high-strength regulations, but it returned to an uptrend and rose more than 130% this year alone.
Ethereum also traded at $4817 at the same time, breaking the $4,800 mark for the first time ever. On domestic exchanges, Bitcoin and Ethereum recorded new highs, surpassing 82 million won and 5.8 million won, respectively, during the day.
It is analyzed that additional listings of Bitcoin ETFs are predicted on the US stock market, and the favorable comments of the new New York Mayor in the US and the demand for virtual currency as ‘digital gold’, a means of hedging inflation, are leading the upward rally. Coinbase, the largest cryptocurrency exchange in the U.S., analyzed that “supply chain bottlenecks and a shrinking labor force (inflation expected) are driving investors to a store of value like Bitcoin.” In such a friendly environment, the prospect that the price of virtual currency will continue to rise is also growing. JP Morgan said, “As inflation concerns have risen, interest in Bitcoin as a hedge against inflation has increased.”
However, there are still many experts who believe that there is a bubble in the price of cryptocurrency. Mark Mobius, chairman of Templeton Asset Management’s Emerging Markets Group, recently said, “Cryptocurrency is a religion, not an investment. It’s just a means to speculate or enjoy.” JP Morgan also added, “(For a further increase in price), the volatility of Bitcoin should decrease and an atmosphere should be created for investors who prefer safe assets to seek Bitcoin.”
Hong Ki-hoon, a professor of business administration at Hongik University, said, “There is a growing atmosphere for major virtual currencies such as Bitcoin to be incorporated into the institutional market, but as there is still controversy over the appropriate price, it is necessary to be cautious about investing.”
Reporter Kim Ja-hyun zion37@donga.com
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