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Analysts of the market intelligence company CryptoQuant note that the current patterns in Bitcoin (BTC) metrics indicate possible changes in market dynamics.
Bitcoin Price Faces Short-Term Volatility
After a period of strong decline, local exchanges have experienced a significant increase, showing an influx of 20,000 BTC. This increase suggests that more Bitcoin is being deposited exchangewhich usually indicates a commercial or commercial purpose.
This type of behavior may add more selling pressure to the price of Bitcoin, which has fallen by about 7% in the past two weeks, showing a possible short-term sign. to waver.
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At the same time, netflow on all exchanges turned positive, with a total increase of 15,800 BTC. This is a reversal of the negative trend seen in recent weeks that is which do not have on the exchange it is now more than the output.
When combined with growing reserves, this change strengthens the possibility of increased trading activity or profit taking by investors, according to CryptoQuant’s analysis.
While the general trend in the market is in favor of accumulation and self-storage, these recent changes may reflect a growing awareness among investors, who may be preparing to take profits or fight for a possible price correction.
In addition, the Bloomberg report highlights the main metric gauging interest in Bitcoin from South Korea, which has risen to a four-month high amid ongoing political unrest in the East Asian country.
Trading Rate Increases As Political Crisis Increases
Known as the “Kimchi Premium,” this metric measures the price gap between Bitcoin on South Korean exchange Upbit and Coinbase. Recently, this premium has increased to the range of 3-5%, indicating a high demand from South Korean investors.
According to the reportThe political situation in South Korea has been turbulent, especially following President Yoon Suk Yeol’s brief and controversial declaration of martial law earlier this month, which lasted only six hours before being lifted.
After that, the National Assembly impeached Yoon on December 14, suspended his powers and promoted Prime Minister Han Duck-soo to the position of acting president. In another development, the parliament voted to impeach Han as well, marking a milestone for an acting president in South Korea.
The political upheaval has shaken financial markets, along with growing economic challenges and increased nuclear threats from North Korea. The South Korean won also fell by 0.35% against the US dollar.
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According to Bloomberg, South Korea is still one of the top selling markets for cryptocurrencies, with trading volumes in Korea-based exchanges are often higher than those in regular stock markets.
Ki Young Ju, the founder and CEO of CryptoQuant, pointed out that corporate accounts are not allowed on Korean crypto exchanges, which means that most of the crypto activities in the country are conducted by retail investors.
Kimchi Premium has become a well-known metric for measuring retail interest in cryptocurrency, along with features such as tight currency controls and anti-money laundering (AML) regulations have influenced this practice.
At the time of writing, BTC is valued at $93,938, experiencing a 2.5% decline in the last 24 hours, with its nearby support level of $92,000 serving to stop further declines for the top cryptocurrency in the market.
Featured image from DALL-E, chart from TradingView.com
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