South Koreans Bet Big on XRP, Dogecoin as Easing Trade War Fuels Risk Taking
South Koreans are showing a strong interest in XRP and dogecoin (DOGE), signaling a resurgence of risk-taking behavior among speculative traders.
The surge in trading these alternative cryptocurrencies is attributed to the improving sentiment around the U.S.-China trade situation and anticipation of potential interest rate cuts. Retail traders in South Korea are favoring XRP and DOGE over bitcoin and ether, driving up trading volumes on local exchanges.
This recent trend closely resembles previous enthusiastic phases seen in South Korea's crypto market, known as the "Kimchi premium" era, where local investors enthusiastically pursued high-volatility assets.
The current wave of optimism aligns with a broader market rally triggered by a significant $1 billion short squeeze that led to the closure of overleveraged positions due to soaring prices.
South Koreans Bet Big on XRP, Dogecoin as Easing Trade War Fuels Risk Taking
Korean crypto markets are experiencing a rally, influenced by a $1 billion short squeeze and improving geopolitical sentiment.
- Retail traders in South Korea are increasingly investing in XRP and dogecoin, surpassing bitcoin and ether in trading volume on local exchanges.
- The surge in altcoin trading is driven by easing U.S.-China trade tensions and expectations of potential rate cuts.
- Korean crypto markets are experiencing a rally, influenced by a $1 billion short squeeze and improving geopolitical sentiment.
The positive mood in South Korea also mirrors an uptick in geopolitical sentiments following announcements from U.S. and Chinese officials reducing tariffs on some goods to 30% from 145% for a 90-day period, after weeks of speculation on their actions.
As traders keep an eye out for institutional ETF flows and upcoming central bank decisions in June, the current momentum indicates that altcoin speculation is at the forefront of driving this latest upswing.
“Risk assets have recovered sharply to levels that are now challenging even the most ardent bears,” said Augustine Fan, head of insights at crypto options platform SignalPlus. “We believe the pain trade remains to be higher prices until more macro bears throw in the towel.”
The pattern mirrors previous euphoric retail phases in Korea’s crypto market, often dubbed the “Kimchi premium” era, where local investors aggressively chased high-volatility assets.
The move also coincides with a broader market rally fueled by a massive $1 billion short squeeze last week as overleveraged positions were forcibly closed amid surging prices.
The enthusiasm in Korea also reflects improving geopolitical sentiment. U.S. and Chinese officials on Monday said they would heavily cut tariffs on some goods to 30% from 145% for 90 days, following weeks of speculation on what the two superpowers would do.
While traders continue to watch for follow-through on institutional ETF flows and upcoming central bank guidance in June, the short-term momentum suggests that altcoin speculation is leading the current leg higher.
