Altcoin Frenzy: Korean Traders Ditch Bitcoin for Bigger Gains Amid Fed Rate Cut

[뉴욕 = 장도선 특파원] Analysis suggests that traders using Korean cryptocurrency exchanges appear to have shifted from Bitcoin to altcoins based on bullish outlook following the Federal Reserve’s interest rate cut.

According to CoinDesk on the 25th (local time), the Bitcoin Korea Premium Index of cryptocurrency analysis firm CryptoQuant fell into the negative territory to -0.55 on that day, recording the largest discount since October 2023. The Korea Premium Index tracks the price difference between Korean and overseas exchanges. The negative turn of this index means that Bitcoin’s popularity has relatively declined in the Korean market.

Bitcoin: Korea premium index. (CryptoQuant)

The trading volumes on South Korean cryptocurrency exchanges also suggest a similar trend, indicating that South Korean traders are moving to altcoins that offer higher returns than Bitcoin.

According to a chart from 10x Research showing the most traded currency pairs on Korean exchanges over the past 40 days, traders have recently been moving away from Bitcoin-South Korean Won (BTC/KRW) and towards altcoins such as UXLINK, CKB, ARK, and Pendle.

Traders in Korea and other regions are also focusing on altcoins in anticipation of additional interest rate cuts by the Federal Reserve in the future.

Traders have shifted away from BTC/KRW pairs. (10x Research)

Marcus Thielen, founder of 10x Research, commented on the shift away from bitcoin and into altcoins in a note to clients Wednesday, saying “fast-moving traders are taking the opportunity to buy large amounts of their preferred altcoins in anticipation of a strong Q4 rally.”

He also added that “as Bitcoin pushes past $60,000 and targets $65,000, savvy traders are accumulating undervalued altcoins such as TAO, ENA, SEI, APT, SUI, NEAR, and GRT.”

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