[시사저널e=유길연 기자] Bitcoin turned downward again this week (8th to 14th), collapsing the $27,000 (approximately 36.59 million won) level. It is analyzed that this is the result of increased concerns about inflation, such as the recent intensification of the war in the Middle East and the US Consumer Price Index (CPI) being higher than expected. However, there are predictions that the fact that U.S. regulators have decided not to appeal the court ruling to reexamine the decision to reject the Bitcoin spot exchange-traded fund (ETF) will lead to a future rebound.
According to CoinMarketCap, a global virtual asset market site, on the 14th, at 11 am on this day, Bitcoin was worth $26,919 (about 36.48 million won), a significant drop of 3.57% compared to a week ago. Bitcoin, which was close to $28,000 last weekend, began to fall on the 10th. Then, on the 12th, the $27,000 level collapsed and fell to $26,620. Afterwards, it rose slightly and was traded around $27,000.
It is analyzed that the reason Bitcoin was sluggish this week was because the war in the Middle East intensified. On the 7th (local time), the entire world was shocked when the Palestinian armed faction Hamas carried out a surprise attack on Israel. In particular, if the war spreads throughout the Middle East, concerns about inflation will increase due to a surge in international oil prices. “It’s similar to when the war in Ukraine first broke out last year,” said Michael Safai, founding partner at Dexterity Capital. “When there are more questions than answers, investors tend to shrink.”
However, there is also an opinion that the Middle East war did not have a significant impact on the decline. This is because international oil prices actually fell even after the outbreak of the Middle East war. On the 11th (local time) at the New York Mercantile Exchange, the price of Indian West Texas Intermediate (WTI) crude oil ended trading at $83.49 per barrel, down $2.48 (2.88%) from the previous trading day. Accordingly, there is speculation that Bitcoin mining companies may have sold large quantities of Bitcoin to reduce operating costs, causing the price to fall. According to blockchain analysis company IntotheBlock, Bitcoin miners sold more than 20,000 Bitcoins this week.
In addition, the fact that the U.S. CPI index was higher than expected also had an impact on Bitcoin’s slump. The September CPI announced by the U.S. Department of Labor on the 12th (local time) rose 3.7% compared to the same period last year. This is slightly higher than the market expectation of a 3.6% increase compared to the same period last year. On this day, the U.S. stock market also closed lower. The Dow Jones Industrial Average fell 0.51% from the previous trading day, the Standard & Poor’s (S&P) 500 Index fell 0.62% and 4349.61, and the Nasdaq Composite Index fell 0.63%.
However, the fact that the U.S. Securities and Exchange Commission (SEC) decided not to appeal the court ruling to reexamine its decision to reject the Bitcoin spot ETF is considered a positive sign. On the 13th (local time), Bloomberg News reported that the Securities and Exchange Commission (SEC) has no plans to appeal the ruling to reexamine the listing of the Bitcoin ETF applied by asset management company Grayscale Investments.
In 2021, Grayscale submitted a listing application to the SEC, saying it would convert the Bitcoin fund (GBTC) it operates into an ETF. However, the SEC rejected this in June of last year, and Grayscale filed a lawsuit. The Washington DC Federal Appeals Court, which took charge of the lawsuit, ruled in August that the SEC should reexamine the listing of the Bitcoin ETF applied by Grayscale. The SEC, which already approved the listing of the futures ETF, rejected the listing of the Bitcoin spot ETF because the basis for its decision was insufficient.
The industry’s view is that if the SEC does not appeal, there is a high possibility that Grayscale’s Bitcoin spot ETF will be listed. When this news was delivered, Bitcoin, which was at $26,800 at 5 a.m. on the 14th, rose by about 1% to $27,000.
2023-10-14 03:00:09
#Weekly #Coin #Middle #East #warCPIBitcoin #falls
