Despite expectations of Fed rate cuts, Bitcoin has failed to rally strongly, as oil price increases driven by Middle East tensions are acting as inflationary pressure.
Semiconductor stocks broadly weakened, and the three major U.S. indices fell as well. Gold also showed weakness, and the market is gripped by anxiety ahead of the Consumer Price Index (CPI) release.
In U.S. equities, semiconductors and big tech led the decline, and the market closed slightly lower.
However, there are concerns that rising oil prices could act as inflationary pressure.
U.S. Treasury yields and the dollar index both declined. This is generally a favorable environment for gold and Bitcoin.
Gold closed slightly lower, while Bitcoin rose about 2%.
Bitcoin's recent upward trend has outperformed gold. Buying from DAT companies has been strong, with Strive (Strieae)'s buying particularly robust.
This signals that demand from corporate investors is offsetting weakness among retail investors.
Strive is planning an issuance on the order of $5 billion. If the plan proceeds smoothly, a large amount of capital is expected to flow into the market.
This is likely to lead to further strength in Bitcoin.
There is speculation that MicroStrategy (MSTR) common stock could be removed from the MSCI index. Concerns are rising that a negative factor could be priced in on top of a positive one that has already been reflected.
Strive, by contrast, continues to grow, showing a difference in investor preference.
Even if it stays flat relative to yesterday, it appears up 2% numerically compared with the previous day.
As oil keeps rising, inflationary pressure is increasing, which is putting a brake on the rally in risk assets including Bitcoin.
New York Fed President Williams signaled there may be no rate hike next year, and Fed Governor Christopher Waller conveyed a nuance that inflation may ease.
Even so, Bitcoin's price has not risen, because oil prices and Middle East war concerns dominate market sentiment more strongly.
Rather than the hopeful expectation of rate hikes being priced in, the question is where oil goes, and if the war doesn't end exactly, all of this is just empty talk.
Korean investors are active participants in the crypto market. When stocks plunge, they must sell crypto to unwind leveraged ETFs.
As Korean stocks fell yesterday, crypto selling was observed, but with stocks rebounding today, the situation appears to be easing somewhat.
The chair of the National Assembly's Planning and Finance Committee asked for the virtual asset tax notice to be issued before the National Tax Service's comprehensive audit on October 22. The NTS commissioner replied that the notice could likely be issued around November.
November is when the virtual asset tax bill amendment is expected to pass. This is interpreted as the National Assembly's move to re-examine the government's tax plan through the comprehensive audit report.
The NTS stated that as it is in a practical preparation period, it will focus on building the tax system well. It made clear that the timing and method of taxation are matters for the Ministry of Economy and Finance to push forward and the National Assembly to pass.
The National Assembly is demanding that it decide what will be taxed before actual taxation begins. In theory, the Assembly's position is the sounder logic.
His position shifted from skeptical before taking office to supportive.
The governor said this assumes a consortium led by banks holding over 50% of the stake will issue a won-denominated stablecoin, and that this has already been agreed with the government. He noted that the U.S. Federal Reserve is not pursuing a CBDC, and most global countries are trending toward private institutions issuing won-based stablecoins.
Analysts believe the private structure was chosen because government issuance carries concerns over privacy violations and state surveillance.
China is actually issuing and using the digital yuan, a general-purpose CBDC, among ordinary citizens. By contrast, Governor Shin clearly answered that Korea will not pursue a general-purpose CBDC.
Instead, Korea will issue tokens in the form of deposit tokens, so banks and settlement institutions can experiment behind the scenes. Governor Shin has experience at the BIS and holds knowledge of global deposit token experiments.
With a general-purpose CBDC, cross-border CBDCs can be linked through a common platform such as mBridge, enabling foreign exchange and cross-border fund transfers.
Without a general-purpose CBDC, stablecoins are more likely to be used for cross-border transfers. Korea's decision to abandon general CBDC development is expected to raise the need for and role of stablecoins going forward.
Long-time Korean Bitcoin investors view entrusting assets to centralized exchanges such as Upbit and Bithumb negatively. Under the philosophy of decentralization, there is a strong sentiment that one should manage assets oneself.
Because these long-term investors hold substantial assets, their influence on the market is significant.
Wallet makers generate wallets using encryption of 24-word seed phrases. Hackers extract the seed phrase generation algorithm and keep generating wallets at random.
They then locate wallets holding assets and steal them.
The hack originated at Cryptoreleast, an intermediary supplying Ledger in Southeast Asia. Cryptoreless was acquired by a Chinese company in March.
The hack occurred after the acquisition, and suspicions have been raised that it may have been intentional sabotage. However, whether these suspicions are true has not yet been confirmed.
Ledger is the best-selling hardware wallet in the world by cumulative units. Direct shipping involves long delivery times and complex procedures, so intermediaries have been widely used.
Hardware wallet makers similarly rely on intermediaries, but after this hack, they are shifting toward cutting back or consolidating intermediaries.
Answers come from the transcript, with the exact spot cited.
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