The conducive developments in South Korean crypto space have boosted fiat influx into the market, reveals this month’s data.
eToro eanalyst Mati Greenspan pitted Korean Won against the most volumed bitcoin-quoted assets, including the US Dollar, Euro, the Pound and also Tether. The comparison revealed a dramatic surge in the BTC/KRW trading volume compared to other instruments that remained mostly stable throughout this October.
Japanese Shift Theory
While the Korean Won volume surges against Bitcoin, the one that fell in response is that of the Japanese Yen. At the beginning of October, the KRW volume covered 3.39 percent of the Bitcoin market, while the BTC/JPY – at the same time – covered 11.96 percent. By mid-October, the KRW trades had gone up to as much as 41 percent while the JPY toppled to as low as 1 percent.
Australia’s Finder theorized that Japanese investors could be moving their Yens into the South Korean Bitcoin market over security concerns. Japanese crypto exchanges this year had gone through a few high-profile hacks, in which swindlers stole $600 million of cryptos. The yuan trading volume is on its way to the south ever since the hack at Zaif exchange in September.
The October Yen volume on BitHumb, nevertheless, has attained its initial value already and is now covering 12 percent of the overall Bitcoin market. Korean Won yet remains the leading fiat currency by volume in October, beaten only by Tether that is not state-backed.
USDT Volume Depleting
BitFinex still has a lead over other exchanges in Bitcoin-to-dollar trades. It is further reflective in the dominance of Tether’s USDT – a BitFinex-supported stablecoin – over the bitcoin volume charts. Nevertheless, the coin is losing its sheen after being criticized for non-disclosure of US reserves. A considerable number of traders has shifted to other stablecoins. Many have parked their crypto assets in fiat also, which explains a volume shift towards the Won.
The deviation between USDT and Won volume is visibly more than the divergence between Yen and Won on half-yearly charts.
The high volume did not reflect upon the way Bitcoin is trading against the Korean Won. Another chart sourced from BitHumb and TradingView.com reveals that the BTC/KRW pair is trending sideways on daily charts for quite a time. It could mean that while trading on the exchanges has increased, the Bitcoin demand is in equilibrium with its supply. It further explains that the high volume does not specifically signify South Korean investors’ interest in the crypto.
The overall bias in the Bitcoin market is turning bullish after the extension of its stability action. Especially in times when the mainstream stocks are underperforming, Bitcoin is rock steady compared to its volatile swings in the past.
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