Key Takeaways
- Bitcoin is trading at the steepest discount in Korea since October 2023.
- Korean traders are shifting to high-beta altcoins, including UXLINK and ARK.
- The move comes amid bullish forecasts and recent U.S. rate cuts.
Bitcoin is currently trading at the steepest discount on South Korean exchanges since October 2023, according to CryptoQuant’s Bitcoin Korea premium index. The index, which tracks the price difference between Korean and offshore exchanges, dropped to -0.55 on Wednesday, signaling that Bitcoin has fallen out of favor with Korean traders.
The shift in sentiment comes as traders move towards high-beta altcoins, capitalizing on bullish forecasts following the recent U.S. interest rate cut. Data from 10x Research shows a notable decline in Bitcoin-Korean won (BTC/KRW) trading volume over the past 40 days, with traders favoring altcoins such as UXLINK, CKB, ARK, and PENDLE.
Markus Thielen, founder of 10x Research, noted:
Quick-moving traders are seizing the opportunity to load up on their favorite altcoins, anticipating a strong Q4 rally.
Altcoins like TAO, ENA, SEI, and SUI have seen increased interest as traders prepare for a potential market upswing.
This trend reflects broader market expectations of further Federal Reserve rate cuts, which are driving speculative moves away from Bitcoin toward alternative cryptocurrencies.
