Unlike the stock market, cryptocurrency trading continues 24/7 during the Chuseok holiday, drawing keen attention to the price outlook for major cryptocurrencies. Bitcoin (BTC), the leading cryptocurrency, continues to hit record highs, fueling market expectations. While a short-term correction cannot be ruled out, major institutions, including global investment banks, continue to forecast further upside potential.
According to CoinMarketCap, a virtual currency market monitoring site, as of 10:45 AM on the 7th, BTC was trading at $124,788.05 per coin, up 0.71% from 24 hours ago.
At one point on this day, BTC hit an all-time high of $126,279.63 on the cryptocurrency exchange Coinbase. After peaking in mid-August and undergoing a short-term correction, BTC regained momentum late last month. The previous day, it surpassed its previous high of $125,000, and has continued its upward trend since. This increase is interpreted as a result of the steady inflow of funds into U.S. Bitcoin spot exchange-traded funds (ETFs) and expectations of interest rate cuts.
The recent temporary shutdown of the US federal government has heightened uncertainty, increasing demand for safe-haven assets. The euro has also been unstable, affected by the recent political uncertainty in France. The mounting debt burden in the US, Japan, Europe, and other parts of the world is fueling anxiety.
Experts are expressing optimism, arguing that BTC prices still have room to rise amidst these circumstances. Cryptocurrency analyst Credible Crypto noted the possibility of BTC adjusting to the $108,000-$118,000 range, but added, "A decline to that range presents a positive opportunity," adding, "The next step toward $150,000 and beyond has begun."
In a report released on the 2nd, global investment bank JP Morgan stated, "BTC remains undervalued compared to gold," setting a target price of $165,000. The report analyzed, "If ETF inflows continue and capital flows between gold and BTC continue, BTC's market capitalization could expand by more than 40% from its current level."
Standard Chartered also presented a positive outlook. In a recent report, the strategy team led by economist Jeffrey Kendrick stated, "BTC will soon reach a new all-time high," setting a short-term price target of $135,000 and an end-of-year target of $200,000. The report predicted, "ETF inflows and the post-halving supply reduction will combine to support BTC price increases."
Bloomberg News reported that the so-called "debasement trade," a hedge against currency devaluation, is spreading as financial concerns grow over rising debt in major global economies. Investors are flocking to so-called "safe haven" assets like Bitcoin, gold, and silver, rather than traditional major currencies like the US dollar.
However, there are also warnings about increased price volatility and potential investment risks. Mike McGlone, Bloomberg's chief commodity strategist, stated, "BTC is solidifying its status as 'digital gold' in the long term," but warned, "If the U.S. stock market corrects, the cryptocurrency market could be the first to suffer." Citigroup also slightly lowered its year-end Bitcoin price target from $135,000 to $133,000 in a report released earlier this month. The report noted, "The continued strength of the dollar and interest rate uncertainty could limit short-term upward momentum."
Ethereum, the second-largest cryptocurrency by market capitalization, also rose more than 4% on the day, trading at around $4,723 on Coinbase. Other major cryptocurrencies, including XRP and Solana, are also showing upward trends.
Despite the bullish outlook, experts advise caution against increased volatility during a cryptocurrency surge. Jean-David Pรฉquinho, head of Deribit, a cryptocurrency derivatives exchange under Coinbase, said, "From now on, we should be wary of spikes in volatility or changes in put option volume as warning signs of a short-term correction."
The fear and greed index from virtual asset data analysis company Alternative.me stands at 70, indicating "greed." A reading closer to 0 indicates a weakening of investor sentiment, while a reading closer to 100 indicates overheated markets.
- Reporter Shin Jung-seop
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