Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Panic selling hits virtual asset market
The plummeting price of Bitcoin is displayed on a screen at Upbit's lounge in Seoul, Monday. Yonhap
By Lee Yeon-woo
The virtual asset market in Korea saw a significant fall along with the stock market on Monday, with Bitcoin even plummeting to as low as the $50,000 level during trading. This decline wiped out the gains made over the past five months.
As of 3:30 p.m., Monday, Bitcoin traded at $50,484, according to the crypto price tracker CoinMarketCap. This is a 16.85 percent decrease compared to the previous day. It brought the price back to levels last seen at the end of February.
The weakness is attributed to the growing concerns surrounding a possible economic downturn, as evidenced by the U.S. unemployment rate in July reaching its highest level in nearly three years. This has led investors to turn away from risky assets.
Altcoins also couldn't avoid a market crash. As of 3:30 p.m., Monday, Ethereum plummeted by 23 percent from the previous day to $2,217, marking its lowest level in six months since early February. Ripple declined by 19.5 percent, and Solana fell by 20 percent during the same period.
Stocks related to cryptocurrency exchange operators also plunged. Woori Technology Investment, for instance, fell 16.96 percent to close at 6,510 won on Monday.