US Elections: Bitcoin (BTC) Demand in Korea spikes 1,200%, Asia market expert hints major Trump support

Bitcoin Price Forecast

Bitcoin price gained 3% to breach $68,800 mark as US elections kicked-off Nov 5. With on-chain data trends showing rising BTC demand in South Korean markets, an Asian-based crypto trading expert weighs-in on how local traders are bracing up for the outcome of the US 2024 Presidential Elections.

Plena Finance CEO Hints at Major Trump Support across Asia

After hitting a 90-day peak of $73,468 on Oct 29, Bitcoin price plummeted below $68,000 on Monday, Nov 4, as major US investors took on a cautious stance in the week leading up to the Presidential elections on Nov 5.

The BTCUSD daily chart above shows how Bitcoin’s declined 9.23% in a 5-day losing streak, between Oct 30 and Nov 4. Notably, the BTC price dip coincided  with last-minute campaign swings which saw Democrat Candidate, VP Kamala Harris close the gap on the “crypto friendly” Republican nominee, Donald Trump’s lead at the polls.

However, outside of the US borders, Bitcoin demand remains strong, as shown by BTC sharp 3% rebound toward the $68,800 level at the time of writing on Nov 5.

In an exclusive interview with FXEmpire, Sparsh Jhamb, Co-Founder & CEO of Plena Finance, an Asia-based cryptocurrency trading platform offered insights on traders sentiment ahead of the US Elections.

The following is an excerpt from the interview:

Question 1: What is the overall sentiment with the Korean crypto markets, leading up to the 2024 US Elections?

Sparsh Jhamb (SJ) Co-Founder & CEO of Plena Finance: Right now, the crypto market has a pretty bullish vibe, with a lot of people optimistic that a Trump win could trigger the next big bull run. Back in March and April, sentiment was high, but as we got closer to the U.S. election, uncertainty started to creep in.

Many in the crypto space are now waiting to see how things play out. If Trump takes the win, a lot of us believe it could bring a more favorable regulatory stance, giving the market that boost it’s been waiting for. It feels like the market is holding its breath, waiting for the right moment to take off.

Q2. Which US Presidential Candidate is most popular within the Asian crypto community?

SJ: You’d think Kamala Harris might be a favourite among Asian crypto fans because of her Indian roots, but in reality, most people in crypto whether they’re in Asia or elsewhere are hoping for a Trump win.

Trump’s talked about making the U.S. a global hub for blockchain, a place where crypto businesses can actually grow without all the regulatory roadblocks.

That’s got a lot of people excited because it feels like he’d support the industry and push for pro-crypto policies.

It doesn’t really matter where you’re from—crypto enthusiasts everywhere seem to want someone who’ll create a friendlier environment for blockchain innovation, and right now, Trump’s message seems to resonate with that hope.

Q3. In terms of crypto regulations what is South Korean government’s current stance on crypto?

SJ: South Korea is getting serious about crypto regulation. The new Virtual Asset User Protection Act means exchanges have to follow strict security rules, like verifying users with real names and keeping the majority of funds in cold storage.

They’ve even mandated that government officials publicly disclose any crypto holdings to avoid conflicts of interest.

Also in Southeast Asia, approaches vary: Singapore encourages crypto innovation within a regulatory framework, Thailand has implemented tax and compliance rules, while Vietnam remains cautious, prohibiting crypto as legal tender.

Q4. What steps are being taken towards approval of Spot Bitcoin ETFs in Korea and could a Trump win accelerate that?

SJ: South Korea is currently cautious about approving spot Bitcoin ETFs, despite developments in other countries like the U.S. The Financial Services Commission (FSC) has maintained a ban on local spot Bitcoin ETFs, citing concerns over investor protection and financial stability.

However, there’s growing interest, especially among younger South Koreans and political figures, to follow in the U.S.’s footsteps in regulating crypto markets. The opposition party has even considered pro-crypto policies in their campaign, but actual policy changes remain unconfirmed.

While a Trump presidency could reshape U.S. policies, it’s unlikely to directly accelerate crypto reforms in South Korea, as the country’s regulatory focus centers on internal market stability and investor safety. Still, increased U.S. acceptance could indirectly influence South Korea’s regulatory debates over time.

In summary, as the US Presidential election kicks-off, sentiment among Asian crypto traders appears heavily tilted towards a Trump victory, with many hoping it could spark another breakout towards new all-time highs, and inspire favorable long-term regulatory changes globally.

Bitcoin Demand in Korea has Increased 1200% in the Last 14-Days

While Bitcoin price has plummeted 9% in the last days leading up to the US elections, on-chain data trends show Korean traders capitalizing on the uncertain political landscape to buy the dip.

In an indication of the bullish stance, CryptoQuant’s Korean Premium Index (KP Index) tracks the marginal differences in BTC prices on crypto exchanges based in Korea, to other global trading platforms. During periods of intense buying pressure in Korean markets, the KP index swings into positive values, and vice versa.

The chart above shows that Bitcoin Korean Premium Index has consistently trended in positive values in the 14-days leading up-to the US elections on Nov 5. The KP Index rose from -0.06 on Oct 21 to hit 0.71 on at the close of Nov 4 reflecting a 1283% increase in Korean traders’ Bitcoin demand, relative to the US-dominated global markets.

This emphasizes the narrative that majority of Korean traders have been buying the dip, taking advantage of the 9.23% downward market volatility surrounding the US elections.

Bitcoin price has rebound 3% in the early hours of the election day, fueled by confident statements from Elon Musk during a last-minute appearance on the Joe Rogan podcast. However, it remains to be seen if the US elections outcome will trigger a deeper correction or spark another breakout towards new all time highs.

Bitcoin Price Forecast: $70k Retest in Focus as Bullish Momentum Returns

After a 5-day losing streak, Bitcoin price has now entered a sharp 3% rebound, breaking above $68,500 in the early hours of Nov 5. In confirmation of the bullish reversal, the Relative Strength Index (RSI) and Volume Weighted Average Price (VWAP) indicators suggest BTC price could breach $70,000 in the coming days.

At the time of writing on Nov 5, BTC is trading at $68,896, breaking above the Volume Weighted Average Price (VWAP) currently aligns near $68,811. When an asset price moves above the VWAP after a prolonged period of decline, its signals  bullish momentum returning to the market.

More so, the Relative Strength Index (RSI) shows improvement, moving toward the 60 level, indicating strengthening buying pressure. If Bitcoin sustains its upward trajectory and breaks past $70,000, the next key resistance lies around $72,300.

A favorable U.S. election outcome for pro-crypto candidate Donald Trump could further boost market sentiment, accelerating a potential rally to new all-time highs above $75,000. However, should BTC face a “sell-the-news” cycle on announcement of the election outcome, the $66,500 support could be at risk.