Shift in Focus from Bitcoin to Altcoins
South Korean cryptocurrency traders are increasingly shifting their focus away from Bitcoin (BTC) and toward altcoins. This shift follows recent forecasts predicting profitable markets, spurred by the United States’ decision to cut interest rates.
The move was highlighted by the Bitcoin Korea Premium Index, which tracks the price difference between Korean and international exchanges. According to analytics firm CryptoQuant, the index dropped to -0.55 on Wednesday, marking the first time it has reached this level since October 2023. This sharp decline suggests that Korean investors are losing interest in Bitcoin.
Surge in Altcoin Trading Volume
Supporting this trend, trading data from South Korean exchanges indicates a significant increase in altcoin activity. A chart compiled by 10x Research, which tracks daily Korean trading volumes over the past 40 days, shows a clear decline in Bitcoin-Korean won (BTC/KRW) trading pairs. Instead, traders are increasingly favoring alternative cryptocurrencies like UXLINK, CKB, ARK, and PEND.
Global Interest in Altcoins
This growing interest in altcoins is not confined to South Korea. Traders worldwide are turning to altcoins, driven by expectations of further interest rate cuts by the U.S. Federal Reserve. Markus Thielen, founder of 10x Research, highlighted this trend in a recent note. He stated, “Quick money is positioned to load the boat on its favorite altcoins in anticipation of a strong Q4 rally.”
Strategic Moves by Traders
Thielen also noted that while Bitcoin has surged past $60,000 and is eyeing the $65,000 mark, savvy traders are accumulating undervalued altcoins. These altcoins include TAO, ENA, SEI, APT, SUI, NEAR, and GRT. This reflects broader market sentiment, which favors diversification and the potential for high returns in the altcoin market.
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