First Mover Asia: Bitcoin’s Kimchi Premium Has Narrowed, but the Korean Market Is Proving Resilient

First Mover Asia: Bitcoin’s Kimchi Premium Has Narrowed, but the Korean Market Is Proving Resilient

Spread the love

Good morning. Here’s what’s happening:

Prices: Bitcoin continues its slow upwards push, while Korea’s market remains strong with diversified interest says Matrixport’s Markus Thielen.

Insights: The U.S. central bank is likely to raise the interest rate 25 basis points on Wednesday. Will it be finished with monetary hawkishness? An crypto market analyst weighs in.

Prices

A Resilient Korean Crypto Market

As East Asia begins its business day, bitcoin and ether continue to climb, buoyed by another chapter of banking unrest and cooler-than-expected jobs data. Bitcoin is opening at $28,644, while ether is up 2% to $1,869.

While crypto traders continue to eye U.S. economic data, a new narrative is forming in Korea – and one usual metric has been thrown out of whack.

During a recent appearance on CoinDesk TV, Matrixport’s head of research, Markus Thielen, said that Korea’s retail-focused crypto market continues to be strong. Korean traders, in particular, are interested in gaming, altcoins, and of course, XRP, which continues to surge in Korea.

“We have also seen this in the last bull market at the end of 2017, when Ripple accounted for 50% of all the volume, and it was predominantly traded in Korea,” Thielen said.

Thielen also notes that specific altcoins are surging in Korea, including Mass Vehicle Ledger, and Serum.

Bitcoin, for its part, remains at 48% dominance.

But despite this, data from CryptoQuant shows that the Korean “kimchi” premium remains weak. Without the buying pressure on Korean exchanges, there doesn’t seem to be the same price premium as before. Perhaps because the market is now interested in things other than bitcoin.

Insights

Is tomorrow the end of interest rate hikes as we have recently known them?

Maybe, Oliver Rust, head of product at inflation data aggregator Truflation suggested in an email.

On Wednesday, the U.S. central bank is widely expected to raise the rate 25 basis points for a third consecutive time. The Federal Reserve has increased the rate 525 basis points over the past 14 months. But whether it continues this aggressive monetary policy or retreats remains uncertain, Rust wrote.

“With the US banking sector suffering a credit crunch following recent bank failures, and a buyout of First Republic…only just secured by US regulators and JP Morgan, the Fed will be weighing its rate decisions carefully from this point on,” Rust wrote. “However, if inflation refuses to budge, we could well see another hike, despite tighter credit conditions. It’s worth remembering that while a 5% inflation rate is lower than last year, it still points to rapid price rises from already elevated levels.

He added: “Even if this hike turns out to be the Fed’s last, we don’t expect rates to come down from these levels any time soon.”

Fed critics have accused central bankers of spurring the current banking crisis through overly hawkish monetary policies. They had been hoping the bank would suspend its diet of rate hikes.

But Rust noted that the Fed has likely felt compelled to raise the rate amid mixed signals that suggest the economy is still revving too hot, which would mean inflation is not under control. Most notably, despite an unexpectedly weak Job Openings and Labor Turnover Survey (JOLTS), the job market remains robust.

He added that inflation, which has steadily declined over the past six months to its current 5% is likely to reverse at least slightly amid OPEC’s cut in oil production and increased demand for energy from China, which has reopened its economy. “This increase is already being reflected in the prices of energy commodities,” he wrote.

Rust wrote that against the current backdrop, another 25 basis points rate hike from the Federal Reserve is all but inevitable. After that, the central bank is likely to adopt a wait-and-see approach to evaluate the economic impact of its decision. After all, rates will have increased by a whopping 500bps since March 2022, which is a lot for any economy to swallow.”

Important events.

8:15 p.m. HKT/SGT(12:15 UTC) United States ISM Services PMI (April)

CoinDesk TV

In case you missed it, here is the most recent episode of “First Mover” on CoinDesk TV:

Bitcoin’s decline on Monday contrasted with the asset’s lack of movement over the past six weeks. STORM Partners Managing Partner Sheraz Ahmed joined “First Mover” to discuss the recent macro catalysts impacting the crypto market. Plus, a new report shed light on crypto asset evaluation and trends in the Korean market. Matrixport’s Head of Research and Strategy, Markus Thielen, shared his findings. And, OPNX, a bankruptcy claims exchange set up by the founders of collapsed hedge fund Three Arrows Capital, has been formally reprimanded by Dubai’s crypto regulator.

Headlines

NFT Collection Goblintown Will Prioritize the ‘Worst’ Traders in Second Season Mint: Big Inc, the sequel to the goblin-themed collection, will be giving a 50% discount to token holders who mint using the meme coin PEPE.

Coinbase Opens Offshore Crypto Derivatives Exchange: Based in Bermuda, Coinbase International Exchange will not be open to U.S. traders.

Number of Stablecoins Held on Exchanges Slips to 2-Year Low: While stablecoins’ exchange balance has dropped by 44% this year, bitcoin’s price has rallied by 70%.

‘Bitcoin Request for Comment’ Tokens Surge to $137M in Market Value: The BRC-20 standard sounds like the popular ERC-20, but the two are different, with the former lacking the ability to interact with smart contracts.

DCG’s CFO Steps Down as Crypto Conglomerate Repays $350M Loan: The company’s revenue increased from the fourth quarter as crypto prices soar.

DISCLOSURE

Please note that our

privacy policy,

terms of use,

cookies,

and

do not sell my personal information

has been updated

.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a

strict set of editorial policies.

CoinDesk is an independent operating subsidiary of

Digital Currency Group,

which invests in

cryptocurrencies

and blockchain

startups.

As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of

stock appreciation rights,

which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG

.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Related News

the-protocol:-meme-coins-(and-pepe’s-best-friend)-swarm-coinbase-layer-2-chain
ondo-finance-to-move-$95m-to-blackrock’s-tokenized-fund-for-instant-settlements-for-its-t-bill-token
the-munchables-hack-is-way-worse-than-it-seems