South Korean citizens use Bitcoin to protect themselves from fluctuations in the cryptocurrency market. $96,653.7 It pays exactly 3% more for its purchase than US investors. According to CryptoQuant data, this is due to South Korea’s weakening won exchange rate.
Regional Increase in Bitcoin Prices
On Upbit, South Korea’s largest crypto exchange, Bitcoin is trading at 145,000,000 KRW (about 98,600 USD) in won. In comparison, Bitcoin is at approximately 96,700 USD at the time of writing on the Coinbase platform in the USA.
This price difference is linked to the developments after the South Korean parliament decided to dismiss Prime Minister and Interim President Han Duck-soo. This decision came just weeks after President Yoon Suk Yeol was impeached and the won fell to a 15-year low against the dollar.
Concerns About Democracy
Bitwise Investment Manager Jeff Park thinks the situation is worrying.
“These unfolding events are essentially about election fraud and undermining of trust in South Korea’s National Electoral Commission (NEC). The use of impeachment as a political tool and allegations of foreign election interference highlight the vulnerability of democracy to disinformation. This isn’t just a story about Korea; “It is a warning to democracies around the world.”
The depreciation of the won against the dollar reduced confidence in the country’s economy and directed investors to alternative assets. Cryptoassets like Bitcoin have become a popular option in these times of uncertainty.
While investors turn to cryptocurrencies to protect themselves from currency fluctuations, this causes price increases on local exchanges. This causes the crypto market in South Korea to trade at higher values than in the United States.
Fluctuations in exchange rates can significantly affect cryptocurrency markets. Following local economic and political developments can help investors make informed decisions. Given the volatile nature of the cryptocurrency market, it is important to implement risk management strategies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
