Behind the phenomenal rise of bitcoin lies a new force in global financial markets: millions of individual Asian investors.
Although investors are still discussing the hot topic of the United States launching bitcoin futures, in fact, bitcoin, or all cryptocurrency trading, trades in terms of volume, the focus of the transaction is no longer in the United States, but in the East – first In China, after China banned Bitcoin transactions, it moved to Japan again, and South Korea has become the latest hot spot recently.
The bitcoin bull market is different from other financial hot spots in the past, such as the dot-com bubble of the 1990s, where retail investors entered the bull market later. Bitcoin, on the other hand, is a big bull market for bitcoin that comes with retail investors, bringing bitcoin up more than 1,600% this year.
As the chief marketing strategist at IG Group, the world’s largest online trading platform, puts it, “Bitcoin is one of the few in history and the global astronomical growth is dominated and driven by Asian retail investors. Is driven by ordinary investors who do not have as much financial knowledge as professional fund managers. ”
Last year, the Chinese market was the major source of virtual currency trading volume. According to research firm CryptoCompare, as of the end of November, Japan, South Korea and Vietnam accounted for nearly 80% of global Bitcoin transactions. The U.S. transaction volume is about one-fifth of the world’s total. In the past few weeks, stimulated by such good news as bitcoin futures, the U.S. share of the total has only increased.
There are several reasons why the virtual currency investment boom in the Asian market has many causes. Although personal wealth in Asia has been growing, especially in China and South Korea, the stock market is also full due to high real estate prices and making it difficult to find lucrative investment opportunities in the market. In addition, young people in Asia grew up in the wave of e-commerce and mobile payment, and the concept of virtual currency is more acceptable than that of Europeans and Americans.
It is with these Asian investors, the price of bitcoin can rise so high. Analysts believe traditional Wall Street professionals will not be a major driver of Bitcoin for a while. Joshua Brown, chief executive of Ritholtz Wealth Management, a New York-based investment consultancy, wrote on his blog, “This is the first bitcoin bubble that has no investment banks.” Never, the average citizen has beaten ‘big’ in the market money ‘. ”
Bitcoin is so popular in South Korea that trading prices on the South Korean exchanges are much higher than elsewhere. According to Coindesk, bitcoin hit an ultra-high transaction price of $ 25,000 at Bithumb, Korea’s largest electronic money exchange, when Bitcoin hit a $ 17,000 mark in the United States. Two other South Korean exchanges, Coinone and Korbit, also showed prices well above $ 20,000.
The bitcoin frenzy in Asia has sparked opposition from regulators and politicians. China has banned cryptocurrencies trading and ICO this year. Hong Kong market regulators warned later on Monday that some unregulated cryptocurrencies may illegally provide futures and other cryptocurrency-related investment products.
South Korean Prime Minister Lee Lotion has also sounded the alarm bell. In his speech last month, he said: “If we let things go on, I think it will lead to some serious distortions or ill-health.” The Korea Financial Services Commission also said publicly on Monday that the government will not formally authorize any crypto-currency exchange or introduce bitcoin futures.