Bitcoin remains steady at $62,600 as South Korean investors pivot from stocks to cryptocurrencies amid market volatility.
Bitcoin has maintained its value at $62,600 following a significant selloff earlier this week. The price dropped from $64,400 to $61,800 on Monday amidst rising geopolitical concerns, particularly over potential military actions in Iran as warned by former President Donald Trump. This volatility in the stock markets, particularly the KOSPI index, has prompted a notable increase in crypto trading activity in South Korea.
Recent data indicates that Bitcoin's trading saw $283 million in liquidations within a 24-hour period, primarily affecting long positions with a ratio of 74% to 26%. The critical support level to watch now stands at $61,300, according to the Binance liquidation heatmap.
The options market has seen a shift, with bullish sentiment decreasing as evidenced by a change in the put/call ratio from 64% to 58%. The one-week delta skew has also narrowed, indicating a more cautious outlook among traders.
In South Korea, the KOSPI index has experienced a 10% decline since Friday, leading to a staggering 1,426% increase in trading volume on Upbit, a major crypto exchange. This shift suggests that local investors are moving their assets from stocks to cryptocurrencies as they react to the downturn in the stock market.
Ether mirrored Bitcoin's performance, trading within a narrow band of $1,770 to $1,790, with a 2.2% increase in trading volume for ETH pairs. Meanwhile, other altcoins, like LIT, have begun to show signs of recovery following significant gains earlier this year.
Despite the mixed results in U.S. stock markets, where Nasdaq futures rose slightly while S&P 500 futures dipped, the crypto market appears to be gaining traction as investors seek alternatives amid market uncertainties. Gold prices have also been on a downward trend, currently around $4,020 per ounce, down 28% since January.
