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● Kimchi Premium Dips, Bitcoin’s Asia Exit

Why Is the Influence of Korean Bitcoin Investors Declining? A Comprehensive Summary of Real-Time Sentiment and On-Chain Indicators

This article comprehensively analyzes why the influence of Korean investors in the Bitcoin market is weakening compared to the past, including its structural background, actual on-chain data, and the trends in the stock/virtual asset market.
In particular, it delves into key trends such as the Kimchi Premium, current investment sentiment, cross-flows with the domestic stock market, and the recent rise of policy-themed stocks. If you're curious about Bitcoin and asset market trends, be sure to read on.

1. Decline in Kimchi Premium, Weakening Influence of Korean Investors

Despite Bitcoin recently touching $100,000 and creating a bullish atmosphere, the Kimchi Premium (the phenomenon where domestic exchange prices in Korea are higher or lower than overseas prices) is noticeably declining.
This premium surged in the past when the Bitcoin craze was at its peak.
However, now, despite the Bitcoin rally, the premium is significantly reduced.
This indicates that the active buying pressure from Korean investors is not as strong as before.

2. Weakened Investment Sentiment and Changes in Market Atmosphere

Comparing the atmosphere of domestic investors at each point when Bitcoin breaks through $100,000, there was a massive FOMO (Fear Of Missing Out) phenomenon and overheated expectations in the past.
This time, the level of attention is much lower, and on-chain indicators clearly show that the scale of funds flowing into Korea and the trading volume are both smaller than before.
Previously, a Bitcoin bull market would cause an explosion in YouTube, communities, and the overall investment atmosphere, but recently it has been calm.

3. Diversion of Investment Funds Between the Stock Market and Virtual Assets

In the Korean investor base, funds do not flow simultaneously into both stocks and cryptocurrencies. In other words, the number of people actively investing is limited,
and at certain times, there is a concentration of trading volume in the stock market, especially in policy-themed stocks and political-themed stocks.
This affects the total inflow of funds into the virtual asset market, and when money flows into the stock market, the cryptocurrency market tends to weaken significantly.

4. Step-by-Step Rise of Bitcoin/Cryptocurrency Market and Changes in Trader Strategies

The recent step-by-step rise in Bitcoin prices, the repetition of rises and sideways movements, is perceived by traders as "boiling up and then cooling down."
This pattern is less stimulating, leading to an increased proportion of traders focusing on policy-themed stocks and political sectors.
The fact that trading participation in the domestic cryptocurrency market is not as strong as before can also be seen as a signal that the market structure (meta) itself has changed.

5. Impact of Policy Environment and Market Trend Changes

Recent exogenous variables such as the policy environment and global economic risks also have a considerable impact on domestic investment sentiment.
In particular, when government policies or political themes are highlighted, there is a trend for short-term funds to move more strongly into those themed stocks.
This relatively reduces the proportion of money entering the cryptocurrency market, and the contraction of the cryptocurrency market is clearly evident in terms of trading volume.

6. On-Chain Supply and Demand and Market Meta Changes

Real-time on-chain data shows a significant decrease in meaningful new inflows and large-scale movements from Korean accounts and exchanges.
This is also why the "Kimchi Premium" is disappearing compared to the past.
This is not just a short-term price issue, but a structural change—that is, the interest and behavior meta of investors in Korea itself is changing.

7. Implications and Future Outlook

It is necessary to continue observing whether the cryptocurrency market will experience another overheated bull market, or whether there will be a complete shift to an asset allocation era centered on the stock market.
The influence of Korean investors' unique "individual liquidity" is likely to remain limited for the time being, and the scenario will be divided according to the connectivity with the global market and new policy changes.
It is an important time to develop investment strategies considering medium- to long-term structural changes rather than short-term ones.

< Summary >

As shown by the decline in the Kimchi Premium and the slowdown in on-chain indicators, the influence of investors is weakening in the domestic Bitcoin and virtual asset market.
The main investment funds in the market are being diverted to the domestic stock market, such as policy-themed stocks and political-themed stocks.
It is necessary to continue paying attention to changes in the Korean investment meta and the connectivity of the global market in accordance with structural and policy changes.

Why Is the Influence of Korean Bitcoin Investors Decreasing? – Changes in Market Sentiment and Investment Flows

– Reflects all key economic keywords such as Kimchi Premium, market investment sentiment, virtual asset market trends, policy-themed stocks, and on-chain data.
– Provides preemptive analysis of domestic investor behavior patterns, structural changes, and real-time economic trends.

[Related Articles…]

• Analysis of Bitcoin's Rebound and Changes in Korean Market Sentiment in 2024
• The Economic Significance of the Concentration Phenomenon in Policy-Themed Stocks in the Korean Stock Market

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