South Korean Traders Shift to Altcoins Amid U.S. Rate Cut Optimism

Crypto traders on South Korean exchanges have started pivoting away from Bitcoin (BTC) and turning their attention to alternative cryptocurrencies (altcoins), fueled by bullish market forecasts following the recent U.S. interest rate cut.

According to CryptoQuant’s Bitcoin Korea Premium Index, which tracks the price difference between Korean and offshore exchanges, the index slipped into negative territory on Wednesday, hitting -0.55. This marks the steepest discount since October 2023, signaling a loss of interest in Bitcoin among Korean traders.

Trading data supports this trend, with a noticeable drop in Bitcoin-Korean won (BTC/KRW) trading volumes and a shift toward altcoins like UXLINK, CKB, ARK, and PENDLE. A chart from 10x Research highlights the changing daily trading volumes over the past 40 days, underscoring the growing preference for high-beta altcoins over Bitcoin.

This shift isn’t limited to South Korea. Traders worldwide are betting on altcoins, with many anticipating further rate cuts by the Federal Reserve in the coming months. Markus Thielen, founder of 10x Research, noted that nimble traders are capitalizing on the opportunity to accumulate undervalued altcoins, expecting a strong rally in Q4. 

"As Bitcoin surpassed $60,000 and eyes a break above $65,000, savvy traders have been stocking up on altcoins such as TAO, ENA, SEI, APT, SUI, NEAR, and GRT," Thielen shared in a recent note to clients.