‘Real BTC Bull Run Is Yet to Begin’ – South Korean Crypto Chief

Bitcoin Price South Korea

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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April 5, 2024 05:49 EDT

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The “real” Bitcoin (BTC) “bull run” is yet to start, a South Korean crypto firm CEO has claimed.

The comments came from Chung Seok-moon (also known as Peter Chung), the head of the Presto Research Center, in an interview with the newspaper Hanguk Kyungjae.

‘Real BTC Bull Run’ on Its Way?

Chung is the former head of research at Korbit, South Korea’s first crypto exchange. He has also previously worked for Nomura, Credit Suisse, and UBS. He said:

“Bitcoin is still just taking its first steps in the world of institutional funds. The real bull run has not even begun yet.”

Chung, who moved to Presto from Korbit last month, said he was “quite positive” about the future of the crypto markets.

He agreed that the United States Securities and Exchange Commission’s approval of Bitcoin spot exchange-traded funds (ETFs) earlier this year had been a watershed moment for the coin. He explained:

“The approval of the Bitcoin spot ETF has brought about a tremendous change in the market. There may be a [temporary] decline due to [various factors]. But […] there is a high possibility that large amounts of money will now start flowing into the market.”

Chung claimed that the SEC’s approval would “have a significant positive impact on investor accessibility and popularization.”

Many have called on South Korean regulators to follow suit with their own BTC spot ETF approval.

However, regulators have categorically ruled out any such move until April 10’s parliamentary elections.

Regardless, Chung appears to believe Washington has now opened the floodgates for a “real BTC run.”

Traditional Firms Want Bitcoin Access, Expert Says

Chung argued that “traditional financial asset management companies that have not paid much attention to cryptoassets” in the past will now look to “participate in the market.” He said:

“Basically, asset management companies have investment management principles. They maintain the overall rate of return by incorporating assets with low correlations into portfolios. Bitcoin is an asset that has a low level of correlation with traditional financial assets.”

Bitcoin investors facing volatility in Asian trading may be grappling with the fallout of automated trading protocols reacting to flows data for US ETFs holding the cryptocurrency https://t.co/p0jcrkvUrJ

— Bloomberg Markets (@markets) April 3, 2024

Chung went as far as to say that it would now be a “possible dereliction of duty” for asset managers “not to include Bitcoin ETFs in their portfolios.”

He claimed that institutions will soon “have no choice but to inject funds” into crypto “in the future.”

This could become particularly noticeable in South Korea. Retail investors still dominate the nation’s vibrant crypto markets.

Should institutional investors in the nation start embracing crypto, demand could be set for an upward spike.

‘Mid-April Bitcoin Moves Likely’

Regardless, Chung said that “institutional funds” would begin to flow to BTC “in earnest after mid-April.”

He noted that “many financial institutions” go through “a ‘seasoning period’ of about three months for new investment products.”

In the wake of bitcoin's new highs, South Korea's 'kimchi premium' is in the spotlight again https://t.co/y4Mzb6UPxH

— CNBC (@CNBC) April 3, 2024

The Presto chief said managers still need time to “check whether the product is stable and actively traded.” He added:

“Once this period is over, Bitcoin will be looking at a higher [price] than the current [rate].”

And Chung concluded that Bitcoin “may also receive a boost” if Washington decides to “gradually” ease interest rates – leading to a “release of funds.”

Last month, another South Korean analyst said that Bitcoin’s price growth was likely to “continue” in the future as BTC optimism grows in the nation.