Bitcoin Retreats Following the Reinstatement of Civilian Rule in South Korea

Attention is on Bitcoin (BTC-USD) as reports suggest President-elect Trump is considering Paul Atkins, a known cryptocurrency advocate, for the chair of the Securities and Exchange Commission (SEC). The value of Bitcoin experienced a drop following its rise at the announcement of martial law in South Korea, which was quickly rescinded a few hours later. Thomas Perfumo of Kraken, in a discussion with Seana Smith and Madison Mills on Catalysts, shares his insights on how Bitcoin fits into investor portfolios in the midst of international political changes as Trump’s second term commences.

“The correlation of geopolitical events and Bitcoin’s performance, whether up or down, shouldn’t be seen as direct proof that Bitcoin is responsive to such news,” explains Perfumo. He adds, “My recent analysis on Bitcoin’s activity is largely focused on the influx of capital – monitoring ETF growth, the investment strategies of companies like MicroStrategy (MSTR), and the increase in options transactions on the recently introduced [iShares Bitcoin Trust] IBIT.”

He observes, “Such factors often serve as catalysts for significant price movements.” He continues by saying, “In terms of geopolitical events, the key is to consider their impact relative to other significant macroeconomic markets.” In his view, “The market’s response during that event seemed more like a general withdrawal from riskier assets rather than a direct reaction from the crypto market.”

“Crypto’s trajectory in the forthcoming years is likely to revolve around its contributions to an innovation-forward directive,” he concludes.

For additional expert commentary and market analysis, access more of Catalysts’ segments here.

This article was authored by Naomi Buchanan.