secondary title

First, many people withdraw from the market

First, Bitcoin is no longer on the radar of most investors. When the bitcoin craze swept the world in 2017, people could hear people talking about bitcoin everywhere, and its popularity far exceeded the current focus on stock market investment. However, as regulatory issues surfaced and the price of bitcoin fell, many investors began to stop paying attention to bitcoin, and many people even asked, "does anyone still invest in bitcoin?" For most investors, Bitcoin is no longer a glamorous investment, but an insider's game. If Bitcoin once again ushered in a surge of dozens or even hundreds of times like it did in 2017, the number of people who pay attention will continue to increase, but it is difficult to reproduce this grand occasion. Although the price of Bitcoin has continued to rise recently, the stock markets of various countries have also maintained an upward trend. In contrast, investors prefer to choose the stock market that they are familiar with and have simple procedures, so as to give up complicated Bitcoin investment.

secondary title

Second, it is difficult for new funds to flow into the Bitcoin market

secondary title

Third, people still have a lot of negative perceptions about Bitcoin (Bitcoin = cryptocurrency)

secondary title

Thank you Bitcoin for staying strong despite all the headwinds

Therefore, it is difficult for new investment funds to enter, the investment process is more complicated than stock investment and the rate of return is not enough to attract investors, and there is still a strong negative image, etc., which are all important reasons for the limited increase in the price of Bitcoin. eliminated within time.

But on the other hand, Bitcoin still maintains an upward trend under the influence of so many unfavorable factors. Although some people are pessimistic about Bitcoin, thinking that one day the currency price will fall to 0 in an all-round way, but the current Bitcoin price has recovered to 1,300 won. Many people predict that the market that will collapse has also continued to develop and expand due to the emergence of concepts such as DeFi. Although it is difficult to get rid of the negative image in the short term, countries are publishing relevant market research reports one after another, highly appraising the future development potential of this market, and making relevant institutional preparations. Even South Korea, which has a negative attitude towards cryptocurrencies, has introduced the "Special Gold Act", and the Bank of Korea is also preparing to issue CBDC. Society's understanding of cryptocurrencies has improved. At the same time, with the investment funds of large international companies entering this market, coupled with the inflow of investment funds from the United States and other places after institutionalization, the charm of Bitcoin as an investment asset may continue to rise, thus getting rid of the current An unflattering image.

Dae-hoon Han Analyst at SK Securities