Bitcoin’s Uptrend, 6.4% Away from Reaching 100 Million KRW
Stablecoin Tether Surpasses Market Cap of 120 Billion Dollars for the First Time
Bitcoin has succeeded in surpassing the 94 million KRW mark after 85 days. The significant weekly inflow into the US Bitcoin spot ETF market over the last seven months has influenced Bitcoin’s upward trend.
According to Upbit, the price of Bitcoin at 9:30 AM showed a 1.2% increase to around 94.3 million KRW compared to the same time the previous day. Bitcoin began its recent uptrend with a 5% increase on the 14th of this month, breaking the 90 million KRW level on the 15th, the first time in 76 days. Last week alone, it rose by around 11%, and yesterday it breached the 94 million KRW level again after 85 days. At the current price, Bitcoin needs to increase by about 6.4% more to trade above the 100 million KRW mark.
The main reasons for Bitcoin’s recent rise include the increased inflow to the Bitcoin spot ETF market and support from Donald Trump, the US Republican candidate, who has shown a favorable stance toward the cryptocurrency industry.
Last week, the US Bitcoin spot ETF had the largest weekly inflow in seven months, with approximately 2.13 billion USD (2.91 trillion KRW) being injected, according to financial information platform Investor Data.
On the same day, according to Polymarket, Trump had 61% support, compared to 31% for Democratic candidate Kamala Harris.
The investment sentiment toward cryptocurrencies stood at the ‘greed’ level. The crypto fear and greed index from Alternative.me was recorded at 72 points, down 1 point from the previous day. This index shows extreme fear as it approaches 0 and extreme optimism as it approaches 100.
According to blockchain data analysis company CryptoQuant, the net inflow and outflow of exchanges were lower than the average over the past 7 days. Generally, a lower net inflow indicates reduced selling pressure on spot exchanges or decreased volatility risk on futures exchanges.
The European Central Bank (ECB) has argued for implementing legislation to limit Bitcoin’s price rise. In a recent report, the ECB stated that the rise in Bitcoin prices could exacerbate wealth inequality and suggested that legislation is needed to mitigate this risk. ECB economists Ulrich Bindseil and Jürgen Schaff noted that while Bitcoin is similar to gold and its value is expected to rise over time, it will have little social utility. They warned that wealth disparities among latecomers would weaken even if Bitcoin’s value continues rising. If no law is implemented to curb Bitcoin’s price rise, politicians promoting pro-cryptocurrency policies could incite social division under the guise of wealth redistribution.
Following the rise in Trump’s approval ratings, there’s speculation about manipulation in the prediction markets. However, Tarek Mansour, founder of Kalshi, denied these rumors, stating that there is no manipulation in decentralized prediction market platforms and that more people are betting on Donald Trump in Kalshi, a US-only platform.
Finally, the market capitalization of the stablecoin Tether (USDT), a key liquidity indicator in the cryptocurrency market, surpassed 120 billion USD (164 trillion KRW) for the first time. According to Cointelegraph, the market cap of the dollar-linked stablecoin USDT exceeded 120 billion USD as of the 20th. The publication stated that stablecoins act as bridges between fiat currency and the cryptocurrency market, and an increase in their market capitalization is sometimes considered a sign of capital inflow into the crypto market.