As market watchers point to a sudden drop in Bitcoin trading volume, Korean crypto investors seem to be shifting their attention to other minor coins.
Bitcoin trading volume dropped 40 percent last month from January, according to Upbit and Bithumb, South Korea’s two leading crypto exchanges. This was attributed to an abrupt rise in the cryptocurrency. According to the Korea Herald, a significant number of investors seem to be transferring their attention to other minor coins, market watchers said on Tuesday, citing a sharp drop in Bitcoin trading volume, the largest cryptocurrency.
Since January, the price of Bitcoin has more than doubled.
From a low of $28,000 in January to a peak of $60,000 in March, the price of Bitcoin has more than doubled. In January, Upbit and Bithumb traded a total of 833,574 bitcoins, and nearly 500,000 in March. Market watchers believe this reflects a change in investor attention in altcoins, or digital coins other than Bitcoin. Altcoins saw a spike in transactions and market volatility over the same time span. For example, according to Upbit data, altcoins with the largest price increases, such as Mediblock and Chilliz, have increased by more than 3,000 percent in the last three months.
As the price of bitcoin reaches a new all-time high, Korean investors are turning to altcoins.
According to an industry analyst, the trading rate of altcoins increased as bitcoin prices fluctuated less. Investors are looking for other cryptocurrencies to invest in besides Bitcoin, which has become too costly to purchase. Altcoin interest indicates that the crypto market is still bullish. Bithumb, South Korea’s second-largest crypto exchange by transaction volume, saw record-high growth last year as interest in altcoins grew. According to a business regulatory filing on Tuesday, its operating profit rose by 68 percent. BTC is changing hands at $62,500 at the time of publishing.