The Asian Influence on Bitcoin Trading
Asian Investors Driving Bitcoin’s Rally
Bitcoin’s recent surge is largely fueled by Asian traders, with countries like South Korea and China accounting for about 70% of the total trading volumes. This trend echoes the scenario in 2021 when bitcoin reached similar highs, as per data from The Block.
Asian Dominance in Bitcoin Trading
In February, Asian markets saw $791 billion worth of bitcoin trading compared to North America’s $113 billion. In China, a wave of FOMO has led to a surge in interest among small investors, with searches for “bitcoin” spiking on platforms like WeChat.
Factors Driving the Bitcoin Boom
Bitcoin’s price surge to around $65,000 is attributed to various factors, including U.S. regulators approving spot bitcoin ETFs and anticipation around the upcoming halving event in April. The limited supply of bitcoin, capped at 21 million tokens, has also contributed to the price hike.
Legality and Regulations in Asia
The legal landscape for bitcoin trading varies across Asian countries, from Japan’s liberal regulations to China’s outright ban. While spot bitcoin ETFs are prohibited in South Korea, local investors have access to bitcoin futures ETFs through local brokers.
Bitcoin’s Popularity in South Korea
South Korea holds a significant share of the bitcoin market, with a noticeable increase in investments in U.S.-listed bitcoin ETFs. Despite the ban on trading bitcoin ETFs, Korean investors are turning to bitcoin ETF futures to participate in the market.
Bitcoin’s Appeal in Hong Kong and India
Hong Kong has embraced crypto trading, with the city witnessing a rise in bitcoin futures ETF investments. In India, where local exchanges operate legally, a majority of trading is conducted on offshore platforms to avoid transaction monitoring taxes.
Overall, the surge in bitcoin trading in Asia reflects a growing interest in cryptocurrencies, driven by a combination of regulatory dynamics, market trends, and investor sentiment.
