Bank of Korea (BOK) Governor Lee Ju-yeol stated that Bitcoin and other cryptocurrencies have no intrinsic value while predicting high price volatility will remain.
According to Lee, Bitcoin and other major cryptocurrencies lack intrinsic value. However, he believes that all assets will continue to have significant price movements.
Price increase due to institutional investors supporting BTC?
The governor said cryptocurrencies, including Bitcoin, have no intrinsic value. In a recent news report, Lee pointed out the volatile nature of the digital asset industry.
“Cryptocurrency assets have no intrinsic value,” BOK Governor Lee Ju-yeol said at a parliamentary session on February 23.
The newsletter quoted lawmakers asking the BOK head if BTC’s recent bull run was temporary.
“It is difficult to predict the price, but its price will be very volatile.”
Lee has also stated that Bitcoin’s recent rally, followed by other key digital assets, could be driven by many factors. Among them, Elon Musk’s Tesla invests $ 1.5 billion. He stressed that the price escalation could be due to institutional investors continuing to use Bitcoin as a precaution.
In addition, he noted that BOK should not buy bonds directly issued by the government of this country. Otherwise, this would raise fears about fiscal stability and undermine confidence in central banks.
Does Bitcoin’s volatility bring some of the more difficult times for investors?
The volatile nature of the leading cryptocurrency poses quite a bit of trouble for both retail and institutional investors. This particular characteristic is a hindrance to many, leading to some hesitation in whether or not to allocate capital to it.
The price of BTC has risen sharply over the past few months, marking an all-time high. Just a few days ago, it soared above $ 58,000, dragging other altcoins like ETH behind for a while.
However, almost immediately after the growth, BTC corrected significantly, stabilizing around $ 50,000 at press time. As a result, the cryptocurrency market cap has lost more than $ 300 billion in 2 days.
Interestingly, JPMorgan strategists recently said that Bitcoin’s illiquidity could cause more problems. Analysts from the US multinational banking organization argued that BTC was lacking liquidity, warning investors that it could fall in price further.