Korean Investors Propel Bitcoin Price Surge to $109K
The cryptocurrency market has experienced a significant uptrend in the past week, witnessing a 15.06% increase in the price of Bitcoin [BTC]. This positive momentum accelerated over the last 24 hours, with a 2.68% surge that led to a new all-time high.
Notably, Korean investors have been instrumental in driving this bullish rally, buoyed by growing market optimism and a rise in the number of active Bitcoin addresses.
Insights from CryptoCrypto indicate that there is still room for further growth as market conditions evolve.
New Record High for Bitcoin Amid Increased On-Chain Activity
As of January 20th, Bitcoin reached a historic high of $109,114.88, according to CoinMarketCap. During this period, BTC’s trading volume surged by 120.34% to $110 billion, while its market capitalization soared to $2.13 trillion.
The timing of this milestone, just before Donald Trump’s inauguration, has spurred optimism in the market due to expectations of a pro-crypto stance from the new administration.
The surge in Bitcoin’s price is further supported by an 11.47% uptick in the number of active Bitcoin addresses within the last 24 hours, with 798,140 addresses engaged in on-chain transactions.
Elevated activity levels, coupled with price and volume increases, often indicate the potential for a sustained market rally. Bitcoin’s momentum could further strengthen as investors react to evolving market dynamics.
BTC Surge Driven by Korean Investors
Data from CryptoQuant points to a close correlation between BTC’s recent peak and the rise in the Bitcoin: Korea Premium Index, a measure that tracks the price difference between South Korean exchanges and others, reflecting the strength of retail investors in Korea.
Currently, the index stands at 4.42, indicating a substantial price variance in South Korean exchanges and robust BTC buying activity.
The U.S. Premium Index, comparing Coinbase prices with other exchanges, shows a negative value of -0.1189, suggesting that U.S. investors are offloading their BTC holdings.
Despite this apparent bearish sentiment, it presents an opportunity for further price appreciation. Given the influential role of U.S. investors in the market, their entry into the ongoing rally could propel Bitcoin to new highs.
Historically, a similar scenario occurred after Trump’s Presidential win on November 5th, driving BTC to its previous peak of $108,353.
Record Market Cap Gap Between BTC and ETH
The widening gap in market capitalization between Bitcoin and Ethereum has surpassed $1.75 trillion, indicating a clear shift in investor preference towards Bitcoin over Ethereum, the second-largest cryptocurrency by market cap.
This trend could prompt investors to increase their BTC holdings or divert attention away from ETH, aligning with the prevailing bullish sentiment surrounding Bitcoin and potentially driving its price higher. Analysts speculate that Bitcoin could breach the $110,000 mark in the upcoming trading sessions if the current momentum persists.