The won-dollar exchange rate has plunged to a 15-year low, prompting increased demand for cryptocurrencies like Bitcoin (BTC) and Tether (USDT) in South Korea. According to CryptoQuant CEO Ki Young Ju, Koreans are exchanging their won for BTC and USDT at a 3-5% premium on the local crypto exchange Upbit.
This trend highlights a growing preference for cryptocurrencies as a hedge against currency devaluation. With the weakening won impacting purchasing power, South Korean investors are turning to digital assets to preserve value and protect against economic uncertainty. The premium reflects the heightened demand for stablecoins and Bitcoin, often regarded as safe-haven assets during periods of currency instability.
Market analysts expect this trend to continue as the won faces further pressure, potentially driving increased activity in South Korea's crypto markets.
