South Korean Traders Drive Altcoin Surge
Over the past month, the digital asset market has experienced a rally due to growing optimism surrounding the potential authorization of U.S. exchange-traded funds to hold digital assets. This surge has seen Bitcoin increase in value by nearly 40%, with smaller tokens like Solana and Avalanche experiencing even more substantial surges.
Analysts at CryptoQuant, a blockchain data platform from South Korea, highlighted that traders in South Korea are playing a significant role in the increasing trading volume of altcoins. This is attributed to the absence of a futures market for retail investors in South Korea, leading them to explore substantial leverage opportunities within the crypto market, particularly with altcoins.
South Korea’s Crypto Community is Growing
South Korea has gained recognition for its robust blockchain and crypto community, with figures like Terraform Labs co-founder Do Kwon hailing from the country. Despite facing setbacks following Terra’s collapse in May 2022, many crypto firms view South Korea as a significant opportunity, especially amid increasing regulatory challenges in the United States.
In response to the evolving landscape, South Korean regulators are actively monitoring the over-the-counter (OTC) crypto market to prevent its misuse for criminal activities. The South Korean Supreme Prosecutors’ Office Criminal Law Academy recently organized a session addressing challenges and issues related to virtual currencies, such as fraud and money laundering.
Hot Take: South Korea’s Influence on Crypto Market Volume
South Korean-based traders have been instrumental in driving the surge in digital asset market volume. The absence of a futures market for retail investors in South Korea has led them to explore substantial leverage opportunities within the crypto market, particularly with altcoins. The growing optimism surrounding U.S. exchange-traded funds to hold digital assets has also contributed to this surge.
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