Bitcoin Blasts Past 100 Million Won: Is the ‘Trump Effect’ Already in Play
◀ Anchor ▶
The price of one Bitcoin exceeded 100 million won in six months.
The analysis is that the market is placing its hopes on the possibility of election of US candidate Trump, who has supported the virtual asset market.
This is reporter Jeong Hye-in.
◀ Report ▶
In dollar terms, the price of Bitcoin exceeded $73,000 in seven months, and in Korea, it soared by over 100 million won in six months.
At one point, it was close to the all-time high of 105 million won.
The surge in Bitcoin, a representative virtual currency, is interpreted as the so-called ‘Trump effect’.
With the U.S. presidential election approaching in a week, many market participants are betting on the possibility of former President Trump being elected.
This is not the only ‘Trump effect’.
With the prospect that if Trump is elected, prices will rise due to increased fiscal spending, U.S. Treasury bond yields rose and the dollar also strengthened.
The price of gold, a representative safe asset, also exceeded $2,700 per ounce.
On the contrary, our won is weakening.
The won-dollar exchange rate has risen 6% in one month to the 1,380 won range per dollar, and it is unclear when it will reach the 1,400 won range.
The problem is that setbacks are inevitable in the authorities’ plans to cut interest rates to restore domestic demand.
In addition, with exports slowing down, Trump’s blatant trade sanctions policy is also a cause for concern.
However, experts say that this Trump effect may be temporary and that excessive concern is unnecessary.
[문남중/대신증권 연구원]
“Because we are too far ahead of the market in reflecting the phenomena that will occur after the third year of his administration, I believe that a reversal will occur after the results of the US presidential election are confirmed, even if Trump is elected.”
As the US presidential election approaches a close race, uncertainty in the market is growing.
This is Jeong Hye-in from MBC News.
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