While the domestic stock market is closed for the Chuseok holiday, the cryptocurrency market remains active. Bitcoin, which surpassed $86,000 just before the holiday, experienced a drop of over 2% on the first day of the holiday, prompting caution among investors.
According to the cryptocurrency industry on the 25th, the domestic stock market is closed from the 24th to the 25th for Chuseok, with trading suspended until the weekend of the 26th and 27th. In contrast, cryptocurrencies, including Bitcoin, are traded 24/7 on domestic and international exchanges, regardless of the holiday.
Data from CoinMarketCap shows that Bitcoin was trading at $86,452 at 8 a.m. on the 22nd (Korean time), up 6.51% from the previous day. This marked a 10.06% increase from a week earlier, reaching its highest level in about eight months since late January.
However, on the first day of the holiday, the price retraced some of its gains. At around 3:58 p.m. (Korean time) on the 24th, Bitcoin was down 2.75% at $84,122. Ethereum also fell by 2.49%, while major altcoins like Ripple (XRP) and Dogecoin dropped by over 7%.
The cryptocurrency market has been sensitive to global risk asset sentiment. On the 21st and 22nd, Bitcoin surged significantly due to a rally in U.S. tech stocks and a decline in international oil prices, which boosted risk appetite.
However, it remains uncertain whether the recent upward trend will continue through the holiday. Bitcoin's rapid increase of around 10% in just a few days may lead to profit-taking, and external factors such as U.S. interest rates, the dollar, and international oil prices could quickly shift investor sentiment. The price drop of over 2% on the first day of the holiday reflects the increased volatility following the recent surge.
Trading volume during the holiday is also a point of interest. According to CoinGecko, the average daily trading volume on the five major Korean won exchanges during this year's Lunar New Year was approximately $2.78 billion, a 15.4% increase from the previous month. In contrast, last year's Lunar New Year saw a nearly 50% decrease compared to the prior month, and trading volume also fell by 5.2% during Chuseok. This indicates that market trends and investor sentiment had a more significant impact on trading volume than the holidays themselves.
This holiday, key variables include U.S. monetary policy, U.S.-China trade tensions, and movements in international oil prices and the dollar. While the domestic stock market will reflect accumulated overseas variables when it reopens on the 28th, cryptocurrency prices react immediately to relevant news. Even though they are both risk assets, the timing of market responses during the holiday differs.
During the holiday, domestic stock investors will pause trading to monitor overseas market trends, while cryptocurrency investors can respond immediately to price fluctuations. Conversely, rapid price changes during the holiday can create pressure to react in the market.
To alleviate the burden of monitoring prices, automated trading features are expanding. The five major Korean won exchanges, including Upbit, Bithumb, Coinone, Digital X, and Gopax, all support trading through application programming interfaces (APIs). Some exchanges even offer fee waivers for API trading and tools for developing programs using artificial intelligence (AI).
However, automated trading does not eliminate the risk of price fluctuations. Rapid price changes or program errors can lead to significant losses, so it is essential to verify security settings regarding order amounts, frequency, and withdrawal permissions in advance.
A representative from the cryptocurrency industry stated, “Cryptocurrencies continue to trade during holidays, reflecting overseas events in real-time. Given the recent sharp price increases, it is crucial to be cautious of excessive chasing during the holiday due to volatility.”
* This article has been translated by AI.
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