The digital asset market, which has lost its power, is in turmoil due to rumors of ‘Kimchi Coin’s exit’

Bitcoin rebound momentum missing due to dried up money supply
Korean government “begins review of 600 digital assets for listing”
“Rumors of Domino’s delisting of Kimchi Coin in July” spread throughout the market
Declined all day, mainly centered on altcoins with low market caps

The digital asset market continued to be weak as the uncertainty of global macroeconomic conditions increased, there was no good news that could positively change the atmosphere of the digital asset (cryptocurrency) market, and the so-called ‘Kimchi Coin exit rumor’ spread widely in the domestic market.

Since the regular meeting of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve last week, the digital asset market has shown no signs of rebound. The amount of liquid funds flowing into the market has decreased due to increased uncertainty in the U.S. base interest rate policy stance. This is because asset values cannot rise on their own in a situation where money lines have dried up.

The fact that the fund flow of Bitcoin spot exchange-traded fund (ETF) has reversed from net inflow to net outflow is also chilling the digital asset market. According to financial data platform Farside Investor, there was a net outflow of about $189.9 million (about KRW 262.4 billion) from Bitcoin spot ETFs in the U.S. on the 14th (local time), the last day of trading last week.

In Korea, the so-called ‘Kimchi Coin expulsion rumor’ arose. News broke on the 16th that Korea's financial authorities are beginning to review whether to maintain the listing of about 600 digital assets trading on domestic digital asset exchanges. Altcoins fell massively on this news.

Financial authorities announced that they will later confirm the best practice plan for digital asset transaction support and support its application to all exchanges along with the implementation of the Virtual Asset User Protection Act, scheduled for July 19. The subjects of review are 29 digital asset exchanges reported to the authorities, including the five largest Korean won digital asset exchanges, including ▲Upbit ▲Bithumb ▲Coinone ▲Korbit ▲Gopax.

When news broke that a number of altcoins could be delisted in Korea, altcoins with low market capitalizations plummeted.

◇Bitcoin = As of 5 p.m. on the 17th, the price of Bitcoin (BTC) is 93.14 million won as of Upbit. Bitcoin market share (dominance) was 55.38%.

Despite Bitcoin's decline, experts praised its value. The analysis is that Bitcoin is emerging as a better investment target as it is showing a steep price rise compared to gold and its relative scarcity is increasing.

Motley Fool, an investment magazine, reported on the 17th, “Bitcoin can provide a better investment opportunity than gold,” because “the supply is clearly limited and storage and trading are much easier.”

◇ Rising Coin = As of Upbit at 5pm on the 17th, the digital asset that recorded the largest increase compared to the previous trading day was Bounce Token (AUCTION), which rose by about 4%.

Bounce is a protocol that operates a distributed auction platform using blockchain technology and provides services such as token and NFT auctions, real asset auctions, and Ad Space auctions.

Bounce is a protocol that operates a distributed auction platform using blockchain technology and provides services such as token and NFT auctions, real asset auctions, and Ad Space auctions.

Bounce Token is a digital asset used by Bounce and is used as a means of governance and payment within the protocol. Bounce Token was newly listed on the Upbit Korean Won exchange on the 29th.

◇Fear and Greed Index = The cryptocurrency fear-greed index provided by Alternative has entered the ‘Greed’ stage with 71 points. The greed stage is the stage where price volatility and trading volume increase, and is the stage where prices rise. There is a high possibility of a short-term peak forming, so one must be cautious when selling.

Reporter Seungwon Kwon ksw@