According to a report by the Financial Services Commission of South Korea, the number of cryptocurrency investors in South Korea has reached 7.78 million in the first half of 2024, an increase of 21% from the second half of 2023. During the same period, the average daily trading volume of cryptocurrencies increased from 3.6 trillion won to 6 trillion won, and the total market value reached 55.3 trillion won, an increase of 67% and 27% respectively.
Historically, Bitcoin has traded at a premium of up to 50% in the South Korean market due to South Korea’s unique regulatory framework that restricts cross-border capital transfers by foreign users. In March of this year, as BTC hit an all-time high, the “South Korean market premium” soared to 10%, then fell back to 1-2% in the summer.
It is worth noting that previous instances of a negative “Korea premium” have often heralded a rebound in the broader cryptocurrency market. This time, the market is expected to continue to be positive during the upcoming US election.