Crypto Rout Deepens as Bitcoin Breaks Key Threshold in Korea (Image courtesy of Yonhap)
SEOUL, Feb. 6 (Korea Bizwire) — Bitcoin tumbled below 100 million won in South Korea on Friday, sinking to its lowest level in more than a year as tightening expectations in the United States rattled risk assets worldwide.
As of 7:30 a.m. on Upbit, the country’s largest cryptocurrency exchange, one bitcoin was trading at 93 million won, down 13.8 percent from the previous day. The slide marked its weakest level since October 25, 2024, erasing all gains made after Donald Trump’s election victory in early November of that year.
The cryptocurrency first breached the psychologically significant 100 million won threshold at around 1:50 a.m., continuing its downward spiral through the morning. It was the first time bitcoin had fallen below that mark since November 6, 2024.
Other digital assets suffered even steeper losses. Ethereum, the second-largest cryptocurrency by market capitalization, dropped 14.8 percent to 2.7 million won, its lowest price since May 8, 2024. Ripple’s XRP plunged 23.5 percent to 1,707 won, while Solana fell 15.6 percent to 115,000 won.
From Crypto Frenzy to Trading Freeze: South Korea’s Sharp Market Reversal (Image courtesy of Yonhap)
Analysts attributed the sharp sell-off to mounting concerns over U.S. monetary policy. Kim Min-seung, head of research at Korbit, said markets were reacting to the nomination of Kevin Warsh as chair of the Federal Reserve, widely viewed as hawkish on inflation and supportive of tighter monetary conditions.
“Expectations of prolonged high interest rates and reduced liquidity are weighing on risk assets across the board,” Mr. Kim said.
He added that recent remarks by Treasury Secretary Scott Bessent — stating that the Treasury has no authority to instruct banks to purchase bitcoin — further dampened sentiment.
Trading volumes in the spot market remain thin, and investor confidence appears deeply chilled. Still, Mr. Kim noted that as prices approach potential lows, some investors may begin scouting entry points, suggesting that volatility could persist in the weeks ahead.
Ashley Song (ashley@koreabizwire.com)
