According to Upbit and Bithumb, South Korea’s two leading crypto exchanges, Bitcoins’ trading volume fell 40 percent last month from January due to an abrupt surge in the cryptocurrency. The Korea Herald reported that an ample amount of investors appears to be shifting toward other minor coins, market watchers here said on Tuesday, citing a sudden decline of Bitcoin trading volume, the largest cryptocurrency.
The price of Bitcoin has more than doubled since January.
The price of Bitcoin more than doubled from $28,000, the lowest point in January, to $60,000, the highest point in March. Upbit and Bithumb traded a combined 833,574 bitcoins in January and nearly 500,000 in March. Market watchers say that this also indicates shifting investors’ interest toward altcoins, alternative digital coins to Bitcoin. During the same period, altcoins showed an increase in transactions and market volatility. For instance, Upbit data showed that altcoins recorded the highest price hike, such as Mediblock and Chilliz, which skyrocketed more than 3,000 percent during the last three months.
Korean investors turn to altcoins as bitcoin price sees a new all-time high.
“The transaction volume of altcoins went up as bitcoin prices showed fewer fluctuations. Investors are seeking other opportunities in cryptocurrencies other than Bitcoin, whose price might have become too expensive to buy,” an industry expert said. “Interests in altcoins show the crypto market is still in a bullish atmosphere.” Amid diversifying interests in altcoins, Bithumb, South Korea’s second-largest crypto exchange by transaction volume, saw a record-high growth last year. Its operating profit increased by 68 percent, a company regulatory filing showed on Tuesday. At the time of writing, BTC is changing hands at $62,500.