Recently, Bitcoin’s price managed to increase to an all-time high when it reached over $61,000 just this past Saturday. This led to crypto exchanges based in South Korea experiencing so much traffic that the sheer volume of transactions being carried out actually surpassed the number of transactions of the local stock market. This is extremely unprecedented, and it shows a shift in the balance of power when it comes to cryptocurrency and digital trading, as clearly consumers and investors alike are searching for alternative ways to earn an income.
Combined volume exceeded $14 billion
The accumulated 24-hour volume of several crypto exchanges in South Korea, including but not limited to Korbit, Bithumb, UPbit, and Coinone, exceeded a whopping $14 billion just yesterday. Just a couple of days earlier on Friday, the same metric seemed to be approximately $14.5 billion on the KOSPI (Korea Composite Stock Price Index). Additionally, an amount of $10 billion was also recorded on the KOSDAQ (Korean Securities Dealers Automated Quotations).
This rapid increase in volume was the direct result of the spike in BTC price, which rose all the way up to $61,000 (although it dropped back down to below $60,000 shortly afterwards).
Volumes recorded may not always be necessarily accurate
Of course, the sheer volume recorded in South Korea’s crypto exchanges is undoubtedly beneficial for the locals, both in terms of domestic and international market development. However, it should be noted that the number of volumes recorded is not always necessarily accurate. This is largely due to the pervasiveness regarding volume inflation itself. In fact, a number of these aforementioned crypto exchanges in South Korea have experienced their fair share of business-related as well as regulatory challenges in 2020.
This is proven even further when just this past August, the third biggest cryptocurrency exchange Coinbit was seized by the authorities due to allegations revolving around the notion that most of the transactions recorded through them were all faked via wash trading. As of the time of this writing, Coinbit’s volume over their 24-hour transaction period is a little over $900 million.
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