Bitcoin Falls Below 100 Million Won Amid Rising Interest Rate Concerns and Middle East Tensions

Cryptocurrency markets, including Bitcoin, are experiencing a sharp decline. This downturn is attributed to escalating military tensions between the U.S. and Iran, coupled with growing concerns over further tightening by the Federal Reserve.

As of 8 a.m. on June 4, Bitcoin was trading at $64,779 (approximately 99.43 million won), down 2.75% from the previous day. This marks the first time Bitcoin's price has fallen below 100 million won since April 2, when the effects of the U.S.-Iran conflict were still being felt.

Major altcoins are also showing weakness. Ethereum, the second-largest cryptocurrency by market capitalization, fell 2.09% to $1,824. Solana (SOL) dropped 2.29% to $72.11, while Ripple (XRP) saw a slight increase of 0.35%, trading at $1.20.

Market analysts suggest that rising tensions in the Middle East have led to increased international oil prices and a surge in bond yields, negatively impacting investor sentiment.

According to Yonhap News, the Iranian Revolutionary Guard Corps (IRGC) attacked U.S. military bases in Kuwait and Bahrain early on June 4 in response to strikes on Iranian tankers and a telecommunications tower on Qeshm Island. Iran claims these attacks are retaliation for recent U.S. actions, which included targeting radar facilities on Qeshm Island on June 1 and disabling an Iranian tanker with a missile on June 2.

As U.S.-Iran hostilities continue, Brent crude futures closed at $97.81 per barrel, up 1.9%, while West Texas Intermediate (WTI) futures rose 2.4% to $96.02 per barrel. Additionally, news that U.S.-based company Strategy, which holds the largest Bitcoin reserves globally, recently sold some of its Bitcoin has further shaken investor confidence.

The Crypto Fear and Greed Index on CoinMarketCap registered a score of 24 (indicating fear) as of today, down 10 points from last week’s score of 34. A score closer to 0 indicates extreme fear, while a score near 100 indicates extreme optimism.

Meanwhile, at the same time on the domestic exchange Bithumb, Bitcoin was trading at approximately 96 million won ($62,540), down 2.99% from the previous day. The 'Kimchi Premium' was recorded at -3.5%, indicating that Bitcoin prices in South Korea are lower than those overseas.