Investors from South Korea, China, and other Asian nations are driving approximately 70% of Bitcoin’s trading volumes, echoing their dominant role from 2021 when Bitcoin previously reached similar high values.
This is according to cryptocurrency exchange data reported by The Block.
In February, Asia dominated Bitcoin trading, accounting for $791 billion of the total $1.17 trillion traded globally. This far surpasses the $113 billion traded by North American investors, continuing a pattern observed since November.
In China, a significant number of retail investors, disillusioned with a sluggish stock market, are experiencing FOMO (fear of missing out). This sentiment is evident in the notable surge in Bitcoin searches on WeChat, a popular messaging app, where queries about Bitcoin increased twelvefold in February.
Mia Wang, who works in the finance sector in Zhejiang, a province in Eastern China, shared her perspective with Reuters, saying, “I want to buy some Bitcoin at a good price and hold. It has increased a lot and is expensive now, but I’m concerned there might not be any significant price correction.”
Overnight, Bitcoin approached its all-time high, soaring to $68,828, just $72 shy of its record level.
This year, Bitcoin has witnessed a 50% increase in value, with the majority of this growth occurring in recent weeks. This surge followed the introduction of broader trading mechanisms in the US, significantly impacting the cryptocurrency’s value.
The launch of spot bitcoin exchange-traded funds (ETFs) has opened the door for substantial new investors, reigniting enthusiasm and momentum in the cryptocurrency market. This excitement is reminiscent of the surge towards record highs experienced in 2021.
Capital.com’s senior markets analyst Kyle Rodda commented on the situation, stating, “It’s crypto mania 4.0, and I think if we continue to see fairly low bond and rate volatility, it could keep going. There’s definitely an element of irrational behavior starting to infiltrate the market.”
The Bitcoin price is $66,481.12, a change of 3.79% over the past 24 hours as of 7:58 a.m.
