Bitcoin trading volume on Bithumb 2020-2021

In January 2021, the trading volume of Bitcoin on the South Korean cryptocurrency exchange Bithumb amounted to around 13 trillion South Korean won, a nearly 200 percent increase from the previous month. Founded in 2014, Bithumb is one of the leading crypto exchanges in South Korea. Compared to 2020, Bitcoin trading on this platform has seen a surge of more than 1,000 percent.

South Korean cryptocurrency exchanges

South Korea accounts for about nine percent of the global cryptocurrency trading volume. Although there are estimated to be more than 70 crypto exchanges in South Korea as of August 2021, the market is dominated by a few operators such as Upbit, Bithumb, Coinone, and Korbit. With its around five million users, Upbit has the largest market share.

Cryptocurrency boom in South Korea

Bitcoin and other cryptocurrencies are currently not considered legal tender or financial assets in South Korea, yet the South Korean crypto market has grown extensively in the last few years. More than 60 percent of newly registered users of the four major South Korean crypto exchanges were in their twenties or thirties. Many of them also quit their jobs to become full-time traders. There are many reasons for the huge surge in crypto investments, but fear and uncertainty about the future are seen as underlying factors. With housing prices skyrocketing, many South Koreans consider their salaries insufficient to live on. Frustrated young people believe, or at least hope, that investing in digital coins could bring more financial returns.