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Bitcoin rally continues on institutional interests

A local cryptocurrency exchange displays a price chart for bitcoin. (Yonhap)
A local cryptocurrency exchange displays a price chart for bitcoin. (Yonhap)
Bitcoin on Wednesday came under market watch after it spiked nearly to $20,000 earlier this month and continued its rally for days, on the back of institutional investors diversifying their portfolios.

The most popular cryptocurrency remained above $19,000 per coin for a third straight day Wednesday morning, according to Upbit, one of the leading cryptocurrency exchanges here operated by local financial technology firm Dunamu.

After the digital coin reached a recent high of $19,850 on Dec. 1, it slid as low as $16,500 on Dec. 9. It, however, continued to rebound to reach $19,600 on Tuesday. As of 11:11 a.m. Wednesday, the coin was trading at $19,254.

Some market watchers have assumed that the recent price adjustment after spiking to a recent high seems to be linked to Asia whales liquidating some of their holdings for profits.

The latest price movements were also not as dramatic as they were in previous years, suggesting a slight change in market viewpoints that many may have started to see the cryptocurrency as a “stable” investment means.

“(Investors) were unclear whether cryptocurrencies were a means for speculation or a form of assets, but they are now perceived as digital assets by many,” said Park Seong-joon, chief of the blockchain research center at Dongguk University. “Digital coins seem to enter a ‘stabilization’ phase as they are recognized as a type of asset.”

By Kim Young-won (wone0102@heraldcorp.com)
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