Dai that had been plummeting after breaking the $80,000 level is showing signs of stabilization. However, it is still showing high volatility, and experts' price forecasts are mixed, so a cautious approach is required when investing.
According to the global virtual asset status tracking website CoinMarketCap, the price of Dai was fluctuating around the $84,000 level this morning. Compared to the sharp drop to the $78,000 level on February 28, it has risen by about 7%.
At the domestic virtual asset exchanges Upbit and Bithumb, Dai is fluctuating around the 12.6 million won level. Although there were forecasts that it could even break the 10 million won level, as it fell to the 11 million won level on the 28th, it has managed to rebound.
Today's rebound is interpreted as due to the influx of low-price buying following the sharp drop, and the release of the January Personal Consumption Expenditures (PCE) price index on February 28 (local time in the US). The PCE price index is an inflation indicator that the Federal Reserve uses as a reference to judge whether it has achieved its ' 2% inflation target' monetary policy goal. The reported headline and core index increases of 2.5% and 2.6%, respectively, were in line with the consensus forecast compiled by Dow Jones, somewhat alleviating inflation concerns.
Dai prices have plummeted in the past few days. After reaching an all-time high of over $106,000 (over 16 million won domestically) at the time of Donald Trump's inauguration as US president in January, the downward trend began in earnest from February 4. The $78,100 level recorded on February 28 was the lowest in 3 months, a 27% drop from the all-time high. This is analyzed to be due to increased economic uncertainty caused by the Trump administration's tariff policy and the possibility of the Federal Reserve delaying interest rate hikes. The largest-ever hacking incident at one of the world's largest virtual currency exchanges, Bybit, also dampened investment sentiment.
Reuters reported that Dai prices are expected to record the worst week since the collapse of FTX, the largest virtual currency exchange in the US, in November 2022, with a drop of more than 11% this week. From January 27, a record $2.7 billion has flowed out of Dai spot exchange-traded funds.
The outlook is mixed. First, there are forecasts that this rebound is only temporary and that Dai will soon fall back to the $70,000 level. Previously, virtual asset analysis firm Fairlead Strategies' Katie Stockton predicted that "Dai has entered an overbought state, and a short-term decline is inevitable," and that "the support level is likely to form around $73,800."
There are also expectations of an increase. Jeffrey Kendrick, head of digital asset research at Standard and Chartered, said he still expects Dai to exceed $200,000, despite the recent decline.
- Reporter Shin Chung-seop
- jseop@sedaily.com
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