New research made by CryptoCompare has revealed a very interesting finding: the average Bitcoin (BTC) investors of South Korea have spent considerably more fiat cash in exchanges than people from other countries.
The crypto analytics company, which is based in London, has discovered that BitHumb, a local crypto exchange, has received $16 billion USD worth of fiat last month. Upbit, the main rival of the company in the country, had an influx of $7.5 billion USD during the same timeframe.
U. S.-based companies, however, such as Coinbase, Kraken and Gemini, only had injections of around $1 to $5 billion USD each.
It was also noted that these were very similar statistics to the ones from before the Bitcoin price boom which happened in 2017. The two main Korean exchanges were having a considerably higher volume than they saw in February and March this year, when volumes were dropping.
Curiously, despite the bullish sentiment which was starting to build up, Bithumb actually dropped a bit in volume in April.
Most of the exchanges which were really successful at this time were the ones registered in Malta such as Binance and OKEx. They represented the majority of trading volume at the time, followed by the ones registered in Hong Kong and South Korea. For instance, the volumes in Malta increased by 56% since February, while in South Korea and Hong Kong were increased between 20% and 50%.
Number of Account Registrations Rise
Another interesting aspect of the market is that it was reported that South Korean investors are also starting several new accounts. There were reports of employees from the NH Bank, which handles all banking for Bithumb, affirming that employees had to work overtime as many accounts were being created.
With the surge of the price of BTC, investors increased their participation in the industry, as they are eager not to lose a very profitable time in which they can dump cash in the market and see their money double in a short time period.
Mati Greenspan, who currently works as a senior market analyst at eToro, for instance, has affirmed that the trend of cryptocurrencies will continue to be strong in South Korea. P2P exchanges such as LocalBitcoins are having very high volumes this month, for instance. The wave of crypto investors seem to be growing a lot recently and Korea is among the most enthusiastic nations about it.
More USD Dumped Into Crypto Market Than KRW
Curiously, despite the fact that South Korea is dominating the market, 46% of the money entering the market is still USD. These exchanges also accept foreign currency, so the Korean Won (KRW) is not that much prevalent here.
In any case, it can be clearly seen how powerful the local Korean market actually is. Bitcoin continues to attract more and more investments from the U. S. markets, too, so the country will possibly become a very popular beacon for trading soon.