Bitcoin’s South Korea Discount Reaches New Lows as Traders Favor Altcoins

Cryptonews John Brightwater September 25, 2024

Bitcoin’s South Korea Discount Reaches New Lows as Traders Favor Altcoins

Bitcoin is witnessing its highest discount in South Korea since October 2023, as traders gravitate towards altcoins following bullish forecasts after a recent U.S. interest-rate cut. The Bitcoin Korea Premium index has reached -0.55, signaling decreased interest in Bitcoin while altcoin trading volumes rise significantly.

Bitcoin is currently experiencing its most significant discount in the South Korean market since October 2023, as reported by the analytics firm CryptoQuant. This decline indicates a major shift in trader preference, with many investors pivoting away from Bitcoin (BTC) in favor of high-beta alternative cryptocurrencies (altcoins). Following the recent U.S. interest-rate cut, traders on South Korean exchanges have shown a marked increase in trading volumes for altcoins such as UXLINK, CKB, ARK, and PENDLE, rather than the Bitcoin-Korean won (BTC/KRW) pairing. The Bitcoin Korea Premium index has recorded a dip to -0.55, reflecting this change in market sentiment and confirming that Bitcoin has lost some of its allure within South Korea. Data from 10x Research supports this trend by illustrating that in the past 40 days, daily trading volumes have increasingly favored altcoins. Market analysts expect further Federal Reserve interest rate cuts, which has led to traders proactively investing in altcoins, anticipating a strong market rally in the fourth quarter. Markus Thielen, founder of 10x Research, noted in a communication to clients, “Quick-moving traders are seizing the opportunity to load up on their favorite altcoins, anticipating a strong Q4 rally.” He further highlighted that as Bitcoin approaches the $65,000 milestone, traders have been accumulating undervalued altcoins such as TAO, ENA, SEI, APT, SUI, NEAR, and GRT.

The recent fluctuations in Bitcoin’s market price, particularly in South Korea, are reflective of broader trends in cryptocurrency trading behaviors. The Bitcoin Korea Premium index serves as a significant indicator of local market dynamics compared to international markets. With analysts projecting continued adjustments in U.S. monetary policy, particularly a potential series of interest rate cuts, traders are re-evaluating their portfolios. The increase in activity among high-beta altcoins suggests confidence in these assets as viable alternatives amid changing economic conditions and investor sentiment.

In summary, Bitcoin is facing its steepest discount in South Korea since October 2023, highlighting a significant shift towards altcoins among traders. The Bitcoin Korea Premium index’s negative reading and increased trading volumes for altcoins indicate that investors are capitalizing on perceived opportunities in the altcoin market, coinciding with anticipated economic shifts in U.S. monetary policy that may further influence trading behaviors in the cryptocurrency sector.

Original Source: www.coindesk.com