Bitcoin was once 20% ‘dropped’… 1/5 of cryptocurrency market cap may evaporate

The Bitcoin price fell sharply by 20% in an instant. Other coins also declined and rebounded, but some pointed out that the vulnerabilities of virtual currencies were exposed, such as being shaken by negative comments from investment experts and falling due to the emergence of Omicron.

Correspondent Kim Joo-young.

The price of Bitcoin, a representative cryptocurrency, fell by more than 20% in an instant around 3 pm yesterday, trading at the $42,000 level, the lowest since September, and then fluctuating again and again.

The domestic bitcoin price also fell from 70 million won to 56 million won, and the battle continued.

At the same time, Ethereum, the second-largest cryptocurrency by market capitalization, once plunged more than 15% and rebounded.

One-fifth of the total cryptocurrency market capitalization disappeared in an instant, even dropping to the $2.2 trillion level.

Above all, it is an analysis that the risk-avoidance sentiment has strengthened with the advent of the new Omicron virus.

Also, fears of accelerating rate hikes and reduced market liquidity as the US Federal Reserve accelerated its tapering also shook the market.

“The capital market bubble is worse than the IT bubble,” said Charlie Munger, Berkshire Hathaway Vice Chairman, Berkshire Hathaway, an investment expert, at a financial conference. It also had an impact.”

Sewoon Hwang / Research Fellow, Capital Market Research Institute
“The most important reason for this price drop is that more investors are feeling very anxious about the future of Bitcoin again…”

El Salvador, the first country in the world to adopt Bitcoin as a legal currency, also revealed that it “buyed” 150 Bitcoins at a price of about 8.6 billion won.

This is TV Chosun Kim Joo-young.



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