Asian Investors Propel Bitcoin’s Surge, Dominating Global Trading Volumes
Bollywoodfever, March 5: Bitcoin’s recent surge to near-record highs is largely attributed to a wave of investment from Asia, where traders in South Korea, China, and other nations are driving approximately 70% of the cryptocurrency’s trading volume.
This trend mirrors the dynamics observed in 2021, during Bitcoin’s previous peak, as reported by The Block’s crypto exchange data.
In February alone, Asia contributed $791 billion to the $1.17 trillion in Bitcoin trades, significantly outpacing North American investors who accounted for $113 billion.
This pattern has been consistent since November, highlighting Asia’s dominant role in the cryptocurrency market.
In China, a growing interest in Bitcoin is evident among small investors, spurred by dissatisfaction with the sluggish stock market. Searches for “bitcoin” on the messaging app WeChat saw a twelvefold increase in February.
Mia Wang, a finance industry worker from Zhejiang, China, expressed a common sentiment among investors, aiming to buy Bitcoin at a favorable price despite concerns over its current high valuation and the potential lack of a price correction.
Bitcoin’s price hovers around $65,000, approaching its all-time high of $69,000, after a remarkable 148% increase since early October.
This rally has been significantly fueled by the U.S. approval of spot Bitcoin exchange-traded funds (ETFs), with BlackRock’s iShares Bitcoin trust emerging as a key beneficiary of the investment influx.
Anticipation is also building around April’s “halving” event, expected to constrict supply and further elevate prices.
With the total Bitcoin supply capped at 21 million tokens, of which 19 million have already been mined, the event could have a substantial impact on its value.
The regulatory landscape for Bitcoin trading and ownership varies across Asia, from relatively liberal policies in Japan to outright bans in China.
While spot Bitcoin ETFs are prohibited in South Korea, local brokers provide access to Bitcoin futures ETFs, indicating the complex and diverse regulatory environment across the region.
Also Read, Bitcoin Nears Record High, Surpassing $68,000 Amid Renewed Investor Enthusiasm
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