Savers raid bank accounts to buy Bitcoin, gold, and stocks, say experts
South Korean savers are emptying their bank accounts to buy Bitcoin, gold, and stocks, say financial experts.
Savers in the country are withdrawing around $2.7 billion per day from instant-access savings accounts, while banks have seen deposits fall by over $18.6 billion since the start of the year, the South Korean financial newspaper Seoul Kyungjae reported.
“The number of customers seeking to buy gold or Bitcoin [with their] savings has increased significantly compared to the past year or two,” said Kim Ji-yoon, the head of Hana Bank’s asset management service.
As the government prepares to roll out new crypto regulations and regulators prepare to let corporate investors buy Bitcoin, South Korean retail investors have returned to the market in full force.
Record-breaking month
Financial experts forecast that if the trend continues, banks could see a record loss in savings this month.
Meanwhile, trading volumes are up by around 200% at Upbit and Bithumb, South Korea’s two largest crypto exchanges.
Upbit’s daily trading volume has shot up from around $750 million on January 11 to over $2.2 billion on January 14, CoinGecko data reveals.
Bithumb’s trading volume has grown from $300 million to almost $900 million over the same period.
The Korea Composite Stock Price Index, the index of common stocks on the Korea Exchange, has surged by over 15% over the past month.
Crypto-related stocks have also been some of the market’s biggest winners. Chief among these is Mirae Asset, a securities firm that is aiming to complete a takeover of the South Korean crypto exchange Korbit. Mirae has seen its share price almost double in the past four weeks.
Other firms saw more modest gains. Hanwha Investment and Securities, a tech investor that owns a minority stake in Bithumb, has seen its share prices rise by over 6% since mid-December.
And share prices on Naver, the internet giant hoping to take over Upbit operator Dumau this year, have risen 8% over the past month.
“With the stock market booming, we’re seeing many customers who have never invested in stocks before getting involved,” said Kim.
Tim Alper is a News Correspondent at DL News. Got a tip? Email at tdalper@dlnews.com.
You May Also Like
Vitalik Buterin Reveals Ethereum’s (ETH) Future Plans – Here’s What’s Planned
SON DAKİKA: Kara Gecede Sürpriz Altcoin İçin Spot ETF Başvurusu Geldi!
