Bitcoin’s price actions were quite bearish for the past few days once again as the asset fell to $62,300 yesterday but managed to regain almost two grand since then.

The altcoins have also turned green today, with ETH jumping above $3,300 and SOL reclaiming the $140 level.

BTC Challenges $64K

It was just over a week ago when BTC went through its fourth halving, slashing the block rewards by half for the miners. At the time, the asset’s price had experienced tons of volatility amid the escalating tension between Iran and Israel.

After a massive drop to under $59,500, the cryptocurrency jumped by more than five grand and went above $65,000 last weekend. It kept climbing in the first few days of the business week and spiked above $67,000 on a couple of occasions.

However, that was short-lived, and the bears quickly reversed its trajectory. Wednesday was particularly painful as bitcoin dumped to $62,800. It bounced off to $65,000 on Thursday but was driven south once again, dropping to $62,400 on Saturday.

Nevertheless, the bulls have managed to intervene, and BTC now trades close to $64,000. Its market capitalization has neared $1.260 trillion, but its dominance over the alts has been reduced to 50.1%.

Alts See Green

The declining BTC dominance metric means that most alts have outperformed the largest cryptocurrency. Ethereum is a prime example. The largest altcoin is up by more than 6% in the past 24 hours and trades above $3,300. Solana and Toncoin have charted similar gains that have pushed them to $143 and $5.5, respectively.

Further daily increases are evident from MATIC, NEAR, ICP, ETC, ARB, IMX, and MKR.

The total crypto market cap, which had declined by over $150 billion in just a few days by Saturday, is now above $2.5 trillion, having gained $60 billion overnight.

Upbit, a cryptocurrency platform based in South Korea, is responsible for over 80% of the country’s trading activity and has become among the world’s leading five exchanges in terms of trading volume.

According to a Bloomberg report, Upbit’s customers were responsible for nearly a fifth of the total deposits from its major banking partners last year.

Upbit’s Dominance Sparks Concerns

Upbit’s dominance has drawn criticism and concerns, particularly as South Korea moves to enact new legislation aimed at protecting investors following the TerraUSD stablecoin collapse in 2022.

The upcoming regulations, set to be enforced in July under the Virtual Asset User Protection Act, will impose strict requirements on crypto exchanges, including measures to increase reserves, enhance investor protection, and monitor suspicious transactions.

The concerns stem from the fear that these regulations could cement Upbit’s position as the undisputed leader in the Korean market.

Nam HyeonJoon, a spokesperson for Bithumb, Korea’s second-largest trading platform, highlighted the challenges posed by the new regulatory framework, citing the substantial capital and manpower required for compliance.

Simon Seojoon Kim, CEO of Hashed, a Korea-based venture capital firm, echoed these sentiments, noting that well-resourced exchanges like Upbit may find it easier to meet the new standards, potentially widening the gap between market leaders and smaller competitors.

The regulatory challenges have already affected international exchanges eyeing entry into the Korean market. Singapore-based Crypto.com recently announced a delay in its planned launch in South Korea, citing the need for further communication with regulators.

The decision came after reports of regulatory scrutiny, with concerns raised about anti-money laundering practices.

Since the crypto law passed last June, smaller exchanges like Huobi Korea, Cashierest, and Coinbit have closed. Analyst Min Seung Kim from Korbit Research expects Upbit to easily meet new regulations, noting that competition is increasingly focused on the top exchange.

South Korea’s Crypto Craze

Despite the regulatory landscape, South Korea’s appetite for crypto shows no signs of decreasing. More than six million Koreans, representing over 10% of the population, actively trade cryptocurrencies, and the won is emerging as the most traded currency against crypto-assets globally.

The country remains a hotbed of activity for crypto enthusiasts. “I invested more in stocks before, but now I’m all in crypto,” remarked Ho Chan Chung, head of marketing at Korean analytics firm CryptoQuant.

Launched in 2017 by Dunamu Inc., Upbit has quickly become a key player in the crypto market. According to CCData, its trading volume globally has surged to nearly 5%, up from 1.4% in January 2021. Backed by Kakao Corp. and Woori Technology Investment, Upbit reached a peak valuation of $15.7 billion during the pandemic.

Institutional investors in Canada substantially increased their cryptocurrency exposure last year compared to the previous bull market cycle, according to a recent survey by accounting firm KPMG.

The consulting group’s bi-annual survey, “Institutional Adoption of Cryptoassets,” received 65 responses, including 31 institutional investors managing over $500 million in assets and 34 financial services organizations.

Institutional Interest in Crypto Assets Surged in 2023

In its report released on April 24, KPMG revealed that 39% of institutional investors reported having direct or indirect exposure to crypto assets in 2023, marking an increase from 31% in the firm’s 2021 study.

Half of the financial services respondents stated that they offered crypto asset services in 2023, up from 41% in 2021. Additionally, the survey found that one-third of institutional investors had allocated 10% or more of their portfolios to crypto assets, an increase from a fifth reported two years ago.

Kunal Bhasin, a partner and leader at KPMG Canada’s Digital Assets practice, noted that firms seem to be exploring investments in alternative asset classes to serve as hedges against debasement and as reliable stores of value, particularly amidst concerns about increasing inflation and rising debt in the United States.

The survey identified several reasons driving institutional investors’ interest in crypto assets, including a maturing market and improved custody infrastructure. Financial firms cited increased client demand for crypto asset services as a significant factor driving their expansion into this space.

Canada Emerges as Crypto Hub

Last year, many crypto companies relocated a significant portion of their operations to Canada due to heavy regulatory crackdowns in the United States. Notably, Coinbase expanded its presence to the Canadian West Coast, lauding the country’s “regulation by engagement” approach rather than strict enforcement measures.

According to Kareem Sadek, another executive at KPMG’s Digital Assets practice, Canada’s approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in February 2021 played a major role in attracting local investors to the crypto asset class.

However, Sadek highlighted the recent approval of spot Bitcoin ETFs in the United States as a “milestone moment” for many market participants in Canada. He suggested that this development, coupled with the soaring prices of crypto assets, has contributed to the growing attraction of institutional investors to the crypto space.

The report revealed that half of the institutional investors surveyed have exposure to crypto assets through Canadian ETFs, close-ended trusts, or other regulated products. Additionally, 58% have exposure through the stock market, such as Galaxy Digital on the Toronto Stock Exchange, an increase from 36% in 2021.

Moreover, more institutional investors are gaining exposure through derivatives markets, which now stand at 42% compared to 14% in 2021. The only decline observed was in venture capital or hedge fund firms, which fell to 25% from 29% in 2021.