- South Korea’s crypto investors rose 21% in early 2024, with daily trading volumes spiking to $64.35 billion.
- Men in their 30s lead South Korea’s crypto surge, as Bitcoin, Ethereum, and Ripple remain top picks among young investors.
- South Korea’s crypto market faces volatility, with a max drawdown hitting 70%, far surpassing traditional stocks’ 14% dip.
The number of crypto investors in South Korea jumped by 21% in early 2024. According to the Financial Intelligence Unit, investors grew from 6.45 million in late 2023 to 7.78 million this year. Average daily trading volumes also surged, rising from $2.61 billion to a remarkable $64.35 billion, showing South Koreans’ growing interest in digital assets.
Rising Profits and Market Capitalization
The rise in investment activity has led to financial outcomes with Profits from 21 domestic Bitcoin exchanges totaling $428 million, a 106% rise over the prior year. Furthermore, the market value grew by 27% to 55.3 trillion won which is a remarkable achievement.
Notably, growing hopes that pro-crypto candidate Donald Trump would run for president again in the United States helped to revive investor interest in Bitcoin when its price surpassed 100 million won.
Investor Demographics and Popular Assets
Interestingly, men in their 30s make up the highest demographic, with 1.58 million investors. Men account for a majority of the total investors, constituting 68%, amounting to 5.29 million. Significantly, 67% of all investors hold crypto worth less than 500,000 won. Meanwhile, high-net-worth individuals owning assets worth over 1 billion won represent only 0.03% of total investors.
37.2% of investors still own Bitcoin, making it the most popular choice. Next in line are Ethereum and Ripple, with 11.1% and 10.6% of holdings, respectively. The top five also include Dogecoin and Ethereum Classic.
Volatility and Broader Financial Trends
However, as the market expands, so does volatility. The maximum drawdown (MDD) reached 70%, a stark increase from the 62% seen in the previous half. This volatility far surpasses South Korea’s KOSPI index, which recorded an MDD of only 14%.
Moreover, a recent survey shows younger generations, especially those aged 20-39, increasingly view crypto and stocks as alternatives to South Korea’s national pension system. Over half of this group now prioritizes digital assets and stocks for retirement planning.
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