Cryptocurrency Ethereum reaches new heights in Japan and South Korea; could a surge to $4,500 be on the horizon?
Ethereum, the second-largest cryptocurrency by market capitalization, has been experiencing a significant price surge in Japan and South Korea, reaching new local highs in both countries.
In Japan, Ethereum's value reached ¥639,455 on August 10, surpassing its previous peak set in late 2021. Similarly, in South Korea, Ethereum's value reached ₩5.97 million on the same day, also surpassing its previous peak set in the same period.
However, the rise in Ethereum's price is not just a simple currency effect. Instead, it signifies a more fundamental shift in the market.
Institutional Adoption
Leading the rise is Bitmine, a major institutional player with an Ethereum treasury exceeding $2.9 billion. Bitmine has publicly declared plans to acquire and stake 5% of the total ETH supply, signaling a major long-term commitment to Ethereum. This large-scale institutional accumulation strongly supports upward price momentum.
Corporate Interest and Regulatory Support
Policy changes like former President Trump’s executive order permitting cryptocurrency investments in 401(k) retirement plans have expanded institutional and corporate participation in Ethereum. This regulatory shift lowers barriers for long-term investment, increasing Ethereum’s appeal among traditional financial institutions.
Local Market Dynamics
Both Japan and South Korea trade ETH in their local currencies through domestic exchanges, constrained by foreign exchange rules that prevent direct foreign investor participation. This unique structure means that the new all-time highs denominated in yen and won primarily reflect domestic institutional and retail demand within these countries.
Global Influence
The strong performance of Ethereum in these key Asian markets is expected to influence global crypto trends, potentially accelerating broader blockchain and crypto integration into traditional investment portfolios worldwide.
In essence, a combination of strong institutional accumulation by major players like Bitmine, favorable regulatory developments encouraging crypto investments in pension funds, and robust domestic demand in Japan and South Korea, despite appreciating local currencies, underlies the current Ethereum price surge in these countries.
While Ethereum has been trading near $4,300 lately, indicating a building momentum towards a global all-time high, it's currently hovering near $4,257 in terms of USD. This USD value is below the global record of $4,891 set in November 2021.
The strengthening of the Yen and the Won against the U.S. dollar this year suggests a robust regional demand for Ethereum, boosted by a wave of institutional and corporate interest. This trend is expected to continue, potentially driving Ethereum's price further upwards in the near future.
- Bitmine, an institutional player with a massive Ethereum treasury, has declared plans to acquire and stake 5% of the total ETH supply, signaling a significant long-term commitment to Ethereum and contributing to the upward price momentum.
- Regulatory changes, such as the permitting of cryptocurrency investments in 401(k) retirement plans by former President Trump, have encouraged institutional and corporate participation in Ethereum, lowering barriers for long-term investment.
- In Japan and South Korea, Ethereum is traded in local currencies through domestic exchanges, which means that the new all-time highs primarily reflect domestic institutional and retail demand within these countries.
- The strong performance of Ethereum in key Asian markets, such as Japan and South Korea, is expected to influence global crypto trends, potentially accelerating the integration of blockchain and crypto into traditional investment portfolios worldwide.
