Bitcoin News – CryptoQuant Reports Bitcoin’s Deepest Discount Since October 2023
Bitcoin News – Bitcoin (BTC) is currently trading on Korean exchanges at the steepest discount observed since October 2023, as reported by analytics firm CryptoQuant. This significant price gap indicates a notable shift in trading behavior among Korean investors, who appear to be moving away from Bitcoin towards alternative cryptocurrencies (altcoins).
Shift to Alternative Cryptocurrencies Amid Bullish Forecasts
According to the Bitcoin Korea Premium Index, which tracks the price difference between Korean and offshore exchanges, the index turned negative on Wednesday, dropping to -0.55. This decline reflects a shift in preference as Bitcoin has fallen out of favor in Korea. The trading volumes on Korean exchanges corroborate this trend, showing increased interest in high-beta altcoins, which tend to have higher volatility and potential for substantial returns.
Trading Volume Insights from 10x Research
A recent analysis by 10x Research illustrates daily trading volumes on Korean exchanges over the past 40 days, highlighting the most traded pairs each day. Notably, traders have increasingly shifted from the Bitcoin-Korean won (BTC/KRW) trading pair to altcoins such as UXLINK, CKB, ARK, and PENDLE. This transition suggests that Korean traders are capitalizing on the potential for growth in the altcoin market.
Anticipation of Further Federal Reserve Rate Cuts
The movement towards altcoins is not isolated to Korean exchanges; traders globally are also adjusting their strategies in light of anticipated Federal Reserve interest rate cuts in the coming months. This optimism about a favorable monetary policy environment has led quick-moving traders to seek opportunities in the altcoin market.
Trader Sentiment and Strategic Accumulation
Markus Thielen, founder of 10x Research, noted in a client update on Wednesday that “quick-moving traders are seizing the opportunity to load up on their favorite altcoins, anticipating a strong Q4 rally.” As Bitcoin briefly surged past $60,000 and aimed to break through the $65,000 resistance, savvy investors have taken the opportunity to accumulate undervalued altcoins such as TAO, ENA, SEI, APT, SUI, NEAR, and GRT.
FAQs about Bitcoin and Altcoin Trading Trends
Why is Bitcoin trading at a discount on Korean exchanges?
Bitcoin is trading at a steep discount on Korean exchanges due to a significant shift in investor sentiment. According to CryptoQuant, the Bitcoin Korea premium index has turned negative, indicating that traders are favoring alternative cryptocurrencies over Bitcoin. This reflects a broader trend as traders anticipate more Federal Reserve rate cuts, prompting them to explore high-beta altcoins.
What is the Bitcoin Korea premium index?
The Bitcoin Korea premium index is a metric provided by CryptoQuant that measures the price gap between Bitcoin trading on Korean exchanges and offshore exchanges. A negative index value indicates that Bitcoin is trading at a discount in Korea compared to other markets.
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