On the 14th, the amount of domestic cryptocurrency transactions was KRW 16,694.7 billion
March KOSPI exceeded the average daily transaction amount of KRW 16,469 billion
Photo = EPA
The amount of transactions in the domestic virtual currency (virtual asset) market exceeded the daily average transaction amount of the KOSPI market.
According to CoinMarketCap.com, a virtual asset statistics website on the 14th, the amount of transactions for the last 24 hours of 4 major domestic exchanges as of 3 a.m. on the 14th was Upbit 13,678 billion, Bithumb 2,375.8 billion, Coinone 594 billion, Kobit 46.9 billion, etc. It recorded a total of 16 trillion 6947 billion won.
This is a figure that exceeded both the average daily transaction amount of KOSPI in March (16,459 billion won) and the average daily transaction amount of KOSDAQ (11 trillion 4126 billion won).
The rising bitcoin market price has fueled an increase in the amount of domestic virtual asset transactions. According to Bithumb, a virtual asset exchange on the 14th, the bitcoin price exceeded 70 million won at around 5:13 am on the day, breaking the all-time high again. It has been on the rise for 8 consecutive days since the last 7 days.
This is interpreted in the aftermath of the signing of US President Joe Biden’s $1.9 trillion (about 2,140 trillion won) scale of economic stimulus on the 12th. As inflation is expected due to large fiscal expenditures, demand for bitcoin as a hedge tool has soared.
In addition, the steadily increasing demand for bitcoin investment in North America has also had a positive effect on the rise of the bitcoin market. On the 12th, the assets under management of Grayscale, the largest virtual asset investment manager in the United States, for the first time exceeded $44 billion (about 50 trillion won), and North America’s first Bitcoin Listed Index Fund (ETF) launched by Canadian asset management company Perpose Investments last month. BTCC’ has surpassed KRW 1 trillion in assets within three weeks of launch.
There is also a view that the amount of domestic virtual asset transactions is rapidly increasing due to the so-called’money move’, in which money moves in search of high-yield investment destinations. It is explained that the virtual asset market has begun to attract attention as a type of alternative investment destination as the domestic stock market has recently become prolonged.
In fact, this year, investor deposits, which are’stock market funds’, have steadily declined, while virtual asset transaction volumes have exploded. According to data from the Financial Investment Association and the Financial Services Commission, investor deposits decreased by more than 10 trillion won from 74,455.9 billion won on January 12 to 63,8585 billion won at the end of last month. On the other hand, the transaction amount of domestic virtual assets (445 trillion won) for about two months until the 25th of last month this year has already exceeded the cumulative transaction amount of last year (356 trillion 200 billion won). It reminds me of the frenzy of virtual assets in the past.
However, despite the largest transaction volume ever, the influence of the domestic virtual asset market has rather decreased compared to 2017. As of CoinMarketCap.com, on the 14th, the global virtual asset transaction amounted to 172 trillion won, and the domestic transaction amount (16 trillion 6947 billion won) accounted for only 9%. This is in contrast to the fact that at the time of the Bitcoin craze in the past, domestic transactions accounted for more than half of the global market.
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