From March 17 to 21, the virtual asset market rose on comments from Jerome Powell, Chairman of the Federal Reserve, regarding 'the possibility of reconsidering interest rate cuts,' but fell again as sell orders surged. Experts urged caution, noting that the likelihood of increased volatility in the virtual asset market is high.
As of 5 p.m. on the 21st, the price of Bitcoin was trading at $83,858, up 1.94% from a week earlier. The price of Bitcoin surpassed $86,000 after Powell noted, "I will reconsider the possibility of interest rate cuts if inflation stabilizes," but quickly plummeted. Analysts suggest that the uncertainty surrounding U.S. President Donald Trump's tariff policy, coupled with persistent concerns over economic slowdown, has resulted in increased sell orders.
Around the same time, the price of Ethereum rose 4.29% to $1,974 compared to a week ago. Ripple was at $2.40, Binance was at $629.4, and Solana was at $128.14, respectively. The virtual asset industry interpreted that although sell orders had increased, leading to some retracement of gains, Bitcoin and Ethereum saw slight recoveries, which prompted additional upward trends in altcoins.
Choi Seung-ho, a research associate at Jangle, noted, "With geopolitical risks such as the U.S. tariffs set for April remaining, a trading pattern characterized by short-term spikes and drops may be observed for the time being," adding, "It is essential to continue cautious approaches such as partitioning investments and adjusting weightings."
◇ The Bank of Korea says, 'No plans to include Bitcoin in foreign reserves.'
The Bank of Korea officially announced that it will not include Bitcoin in its foreign exchange reserves. The bank explained, "The price volatility of Bitcoin is excessively large," further stating, "It does not meet the criteria of liquidity and convertibility presented by the International Monetary Fund (IMF)." The European Central Bank (ECB) and the Swiss National Bank also do not recognize Bitcoin as a foreign reserve asset, leading to assessments that the likelihood of national-level Bitcoin adoption has decreased for the time being.
Conflicting opinions have emerged within the virtual asset industry regarding the country's possession of Bitcoin. Some argue that foreign reserves should be secure, asserting that volatile Bitcoin should not be adopted. Conversely, there are claims that if other countries proactively recognize Bitcoin as a foreign reserve asset, South Korea may fall behind.
A representative from Jangle pointed out, "There are concerns that excessively overlooking the long-term potential of Bitcoin could lead to significant losses in the future," while also noting, "The current price instability is likely posing a burden on the broader economy, and this concern is quite prevalent."
However, they emphasized that "the pro-virtual asset trend in the U.S., including among figures like President Trump, is increasingly recognizing Bitcoin as 'digital gold.'" They added, "Even if the South Korean government does not incorporate Bitcoin as a foreign reserve asset, rapid responses are necessary for aspects such as fostering the blockchain industry and expanding the digital finance ecosystem."
◇ SEC agrees to withdraw Ripple lawsuit... a conclusion after 4 years.
The U.S. Securities and Exchange Commission (SEC) has reached an agreement to officially withdraw its lawsuit against Ripple, ending a four-year legal battle that had garnered attention in the virtual asset industry. Ripple's Chief Executive Officer (CEO) Brad Garlinghouse declared it "a historic victory for the entire cryptocurrency industry." Earlier, the SEC had filed a lawsuit against Ripple in 2020, demanding a penalty of $2 billion. However, the court ruled in July 2023 that the virtual asset Ripple is "not a security for general investors."
With the end of this lawsuit, the legal basis affirming that virtual assets are not securities has been strengthened, allowing Ripple to focus more on the international payments market and increasing expectations for price appreciation. However, there are also concerns that although the lawsuit has been withdrawn, the SEC may exert pressure in other ways.
Meanwhile, Binance, the world's largest virtual asset exchange, has agreed to suspend legal disputes with the SEC for 60 days until clear regulatory development following the establishment of a new virtual asset regulatory task force in February.
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providing essential operational solutions and trust-based community building services based on on-chain data for companies and foundations adopting Web3. Operating the crypto data intelligence platform Jangle, the Jangle research team is creating content to showcase trends in the virtual asset investment industry based on global virtual asset information and data.