Bitcoin Faces Potential Short-Term Correction Amidst Approval of Spot ETFs by SEC
Bitcoin has seen a decline of nearly 10% as it continues to struggle after the approval of spot ETFs by the SEC. However, relief for the leading cryptocurrency may not come just yet. The movements of the Korean “Kimchi” Premium and the Coinbase Premium suggest a potential short-term correction in the Bitcoin market.
Monitoring Market Shifts with Korea Premium Index
The Korea Premium Index (KPI) is a crucial metric for tracking changes in the market. It assesses the “Kimchi Premium” and provides insights into market sentiment within South Korea, one of the largest players in the crypto world. When the Korean Premium overheats by more than 3%, accompanied by a negative turn in the Coinbase Premium, it indicates that US investors are selling while South Korean investors are actively buying Bitcoin.
Historical Patterns Point to Short-Term Correction
Historically, this trend has signaled a short-term correction within a bullish market and even hinted at the start of a bear market. However, given the current recovery or bull rally phase, these signals are more likely to indicate an impending short-term correction rather than a full-fledged bearish trend.
Cues for Impending Pullback and Sideways Movement
Recent signals observed since mid-December support these indications. Whale investors and miners have been making substantial deposits into Bitcoin exchanges, while investors are selling GBTC ETFs. This increased activity amplifies the likelihood of a pullback and sideways movement in the near term, reducing the chances of an immediate price increase for Bitcoin.
South Korean Officials Required to Disclose Crypto Holdings
To improve transparency in its public sector, South Korea has introduced new legislation that mandates high-ranking public officials to disclose their cryptocurrency holdings. This move was prompted by a scandal involving Kim Nam-kuk, a Democratic Party member who allegedly possessed over $4.5 million in Wemix tokens issued by a South Korean blockchain firm.
Hot Take: Bitcoin Faces Short-Term Correction Amidst SEC Approval
Bitcoin has experienced a significant decline following the approval of spot ETFs by the SEC. The movements of the Korean “Kimchi” Premium and the Coinbase Premium indicate a potential short-term correction in the Bitcoin market. The Korea Premium Index (KPI) is a crucial metric for monitoring these shifts, providing insights into market sentiment within South Korea. Historical patterns suggest that this trend signals a short-term correction within a bullish market. Recent signals, such as whale investors and miners depositing into exchanges and investors selling GBTC ETFs, further support the likelihood of a pullback and sideways movement in the near term. Additionally, South Korea has introduced legislation requiring high-ranking public officials to disclose their crypto holdings, aiming to improve transparency in the public sector.
By
By
By
By
