Bitcoin’s price has been steadily climbing in recent days, coinciding with the appointment of pro-crypto Donald Trump administration in the United States.
This shift in leadership has triggered heightened market expectations, as well as a resurgence of interest among investors especially in Korean, according to latest data.
Bitcoin’s Rising Market Momentum
According to recent analysis from a CryptoQuant analyst known as J, the so-called “Kimchi Premium” is once again on the rise, reflecting higher cryptocurrency prices in Korean markets compared to global averages—a signal of increasing domestic demand.
Additionally, despite Bitcoin’s price reaching new highs, a notable trend has emerged: major investors, often referred to as “whales,” are continuing to accumulate Bitcoin. This ongoing accumulation suggests that many large-scale market participants anticipate further upward movement in the cryptocurrency’s price.
Particularly delving into the analysis, Ryu revealed that the increase in Korean local interest comes at a time when the broader market is benefiting from a more favorable regulatory environment in the US. So far, investors in the region appear to be more confident in the long-term value of Bitcoin, further driving the premium higher.
At the same time, whale accumulation continues to signal optimism in the market’s future direction. Ryu noted:
This accumulation suggests that, notwithstanding current prices reaching record highs, a substantial number of investors are anticipating even greater market upswings. Such confidence is bolstered by the sustained investment activities of these significant market players.
Notably, regardless of these positive metrics, the warning signs from rising US employment rates underscores the importance of monitoring external economic factors that could impact the market’s stability.
The Catch: Rising US Employment Rates
While the current market momentum is encouraging, rising unemployment rates in the US present a potential risk to Bitcoin’s trajectory. Although unemployment remains below projected levels, the consistent upward trend is cause for concern, according to Ryu.
The analyst mentioned that historically, such increases in unemployment rates have preceded economic downturns, which can ripple through global markets and ultimately affect Bitcoin’s performance. The CryptoQuant analyst added:
It is imperative to recognize that increases in unemployment rates have historically been precursors to global economic recessions. Therefore, continuous monitoring of employment indicators is essential. Investors and policymakers alike should remain cognizant of these trends, as a proactive approach is vital in mitigating potential adverse effects on the global economy.
Featured image created with DALL-E, Chart from TradingView