 ▲ Upbit market conditions as of 4:01 p.m. on March 7 |
Amid escalating geopolitical tensions in the Middle East and mounting fears of stagflation in the United States, Bitcoin (BTC) has finally fallen below the 100 million won mark, long regarded as a psychological support level for domestic cryptocurrency investors.
As of 4:01 p.m. on the 7th, according to Upbit, South Korea’s largest cryptocurrency exchange, Bitcoin was trading at 99,872,000 won, down 0.88% from the previous day, surrendering the 100 million won level. Ethereum (ETH), the leading altcoin, also fell 0.68% to 2,908,000 won, while XRP dropped to 2,010 won and Solana (SOL) declined to 123,900 won, with major cryptocurrencies by market capitalization broadly remaining under pressure.
The sharp decline in the cryptocurrency market stemmed from a complex macroeconomic crisis that rattled the New York stock market. Concerns over a potential blockade of the Strait of Hormuz by Iran sent international oil prices soaring more than 12%, reigniting inflation fears. At the same time, U.S. nonfarm payrolls for February posted a shocking contraction of 92,000 jobs. As fears of 1970s-style stagflation—marked by soaring prices and economic stagnation—swept through Wall Street, extreme risk-off sentiment spread across global capital markets.
Liquidity outflows within the crypto market itself further amplified the downturn. Substantial funds flowed out of U.S. spot Bitcoin exchange-traded funds (ETFs), which had served as a strong defensive buffer, while leveraged long positions in the derivatives market were liquidated in succession, unleashing a ભારે wave of forced selling.
Experts forecast that the cryptocurrency market is likely to remain on thin ice for the time being. Significant macroeconomic uncertainty persists, and a major volatility trigger looms with $2.2 billion worth of Bitcoin options set to expire. If Bitcoin fails to quickly reclaim the 100 million won support level and stabilize investor sentiment, disappointment-driven selling could accelerate further declines. Investors are advised to increase cash holdings and adopt a conservative approach rather than attempting premature bottom fishing.
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