Amid a major downward correction in the cryptocurrency market, the head of South Korea’s central bank is skeptical about digital currencies like Bitcoin (BTC).
Bank of Korea Governor Lee Ju-yeol said that crypto assets like Bitcoin have no intrinsic value, local news agency Yonhap reports Tuesday. The official said that he expects more price swings on the market, stating, “It is very difficult to predict the price, but its price will be extremely volatile.”
Speaking at the National Assembly, Lee also addressed possible reasons behind the recent sharp crypto rally, which led Bitcoin to become a $1 trillion asset. The BOK governor cited a number of factors including global concerns over excessive inflation, growing institutional interest, as well as a massive $1.5 billion Bitcoin purchase by Elon Musk’s Tesla.
“These assets saw a steep rise in the shortest period of time,” Lee stated. “I would say institutional investors’ assessment of using bitcoins as a hedge could be interpreted as another