Bitcoin Showing Its Influence... Because of Korean Love?
Bitcoin Dominance Surpasses 50% Since October
KRW Trading Volume Share Rises Amid Bitcoin Bull Run
'Buying Sentiment Indicator' Kimchi Premium Maintains Positive Value
The market capitalization share of Bitcoin in the entire virtual asset market exceeds 52%, demonstrating its influence. The price increase driven by positive factors has heightened domestic investors' interest, which appears to have strengthened Bitcoin's influence.
According to CoinMarketCap, a global virtual asset market status relay site, as of 11:35 AM on the 21st, the 'Bitcoin Dominance,' which is the proportion of Bitcoin's market capitalization in the total virtual asset market capitalization, was recorded at 52.23%.
Bitcoin Dominance began to exceed 50% last October and has since maintained above 51%. On the 6th of this month, it even rose to 53.56. Until the beginning of this year, Bitcoin's position had diminished to below 40%, but it has shown a continuous upward trend.
This rise in Bitcoin Dominance seems to be influenced by the increase in Bitcoin trading in Korea. According to Coinhills, a virtual asset analysis platform, the 'Bitcoin trading volume by national currency' showed that as of October 30th, the Korean won ranked second after the US dollar (84.82%) but accounted for only 6.77%.
However, following positive developments related to Bitcoin, market interest increased, and the proportion of Korean won trading volume also began to rise. The so-called 'triple positive factors' overlapped: expectations of a Federal Reserve (Fed) interest rate cut, the anticipated launch of a Bitcoin spot Exchange-Traded Fund (ETF), and the halving event, which will reduce the number of Bitcoins earned as block mining rewards by half, scheduled for April next year. Consequently, Bitcoin's price surged from around $34,000 on October 30th to the $44,000 range in about 40 days, and the Korean won trading volume share sharply increased from the 6% range to 12-14%.
Trading volume at domestic virtual asset exchanges also increased significantly. Upbit, the domestic market leader, ranked fifth in daily trading volume among all exchanges tracked by CoinGecko, a virtual asset market status relay site, and as of 12:16 PM on that day, its trading volume had increased by 32.66% compared to a month earlier.
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An industry insider stated, "As virtual asset prices rise, domestic coin investors, who generally have an aggressive investment style, seem to be investing in Bitcoin more actively than before," adding, "Considering this tendency, it is expected that altcoin trading volumes will also increase alongside Bitcoin in the future."
The fact that the Kimchi Premium indicator recorded a positive value also shows heightened interest among domestic investors. According to data compiled by CryptoQuant, a virtual asset data company, the Bitcoin Kimchi Premium indicator was 4.48 as of the previous day. This indicator represents the percentage difference in Bitcoin prices between domestic and overseas exchanges; a positive value means that the domestic Bitcoin price is higher than overseas prices and that Korean investors' buying sentiment is relatively strong. Since recording -0.09 on October 30th, the Bitcoin Kimchi Premium indicator has maintained positive values and rose to 6.71 on the 15th of this month.
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