Amid economic uncertainty and volatility in traditional markets, South Korean investors, especially those over 50, are turning to cryptocurrencies as an alternative investment.
Cryptocurrency journalist Colin Wu has reported that South Korean investors are finding cryptocurrencies a safe haven to protect and multiply their savings amid the political crisis facing the country.
Wu shared recent data revealing that the number of accounts held by people over 50 on cryptocurrency platforms has increased by 30,4% over the past 3 years, reaching 775.700 accounts to date. According to the report, in addition to the crisis, Trump’s electoral victory in the last presidential elections in November is also driving the adoption of cryptocurrencies by South Korean investors. This phenomenon, known as the “Trump rebound effect,” is motivated by the expectation of interest rate cuts and the search for higher-yielding assets.
The exodus of bank deposits into cryptocurrencies
Naver, South Korea's leading Internet portal, reported that demand deposits at the country's five major banks have decreased by 26,95 trillion won since June, marking the lowest level since January this year. This movement of capital, known as "Money Move," reflects a mass migration of funds from safe assets, such as bank deposits, to riskier but potentially more profitable investments, such as cryptocurrencies, .
Since November, the price of Bitcoin has seen a 40% increase, breaking through the psychological barrier of $100k and reaching an all-time high (ATH) of $108.260. But this growth is not limited to bitcoin price, but other altcoins like Ethereum and Ripple have also seen significant gains since Trump won the election.
In addition, in South Korea, regulators are looking to further regulate and legitimize the sector and are considering postponing the imposition of taxes on cryptocurrencies until 2027, while these cryptoassets are gaining acceptance on different fronts. Wu reported that the national government will allow universities and local governments to liquidate cryptocurrency donations received starting next year, so that they can convert these donated digital assets into cash. Despite the crisis facing the country, these measures are generating a climate of optimism among investors.
People over 50 are leading the trend in investing in cryptocurrencies
South Korean investors aged 50 and above are playing a key role in crypto investment in the country. According to data, this age group collectively owns 6,76 trillion won in digital assets, with an average investment of 8,72 million won per person. Many of these investors, who have already experienced the 2021 cycle, are now looking to take advantage of the new wave of growth in the cryptocurrency market to secure their retirement, reported Wu.
In conclusion, in an economic environment marked by uncertainty, cryptocurrencies have become an attractive option for South Korean investors, especially for those looking to diversify their portfolios and protect their savings from inflation.
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