Catenaa, Sunday, February 02, 2025 – South Korean cryptocurrency traders are facing uncertainty as they head into the Lunar New Year holiday, with many concerned about the potential market volatility.
The holiday, which began on January 29, coincides with the US Federal Reserve’s key interest rate decision, adding to the unease in the domestic crypto market.
The extended break, lasting from January 27 to January 31, offers a rare nine-day respite from work for most South Koreans, but crypto markets, which operate 24/7, will remain active.
This presents a dilemma for traders who are unsure whether to hold, buy, or sell their digital assets during the holiday.
Historically, Bitcoin (BTC) and Ethereum (ETH) prices have trended upward during the Lunar New Year period, according to data from the Upbit exchange.
However, the holiday also brings potential for sharp price drops, with previous years seeing declines of up to 5%. South Korean traders, like Kim, a Seoul-based crypto investor, are wary of sudden market moves, particularly if US officials, including President Donald Trump or the Federal Reserve, make announcements that could trigger swift price fluctuations.
Experts suggest that while Bitcoin has historically performed well during the Lunar New Year, uncertainty surrounding global economic factors, including the Fed’s stance on interest rates, may influence market movements.
With local political developments unlikely to impact the market, traders are looking to Washington for cues that may shape the crypto market in the days ahead.
