South Korean Crypto Traders Face ‘Nail-biting’ Lunar New Year Conundrum

The South Korean crypto community is experiencing a tense Lunar New Year break, with experts noting that the country’s longest holiday coincides with a critical period for Bitcoin (BTC) and altcoin markets.

According to Seoul Shinmun, South Korean crypto traders are “troubled.” They are concerned because the holiday “overlaps with the US Federal Reserve’s upcoming base rate decision,” the outlet reported.

South Korean Crypto Community: Time to HODL, Sell, or Buy?

As such, the outlet reported, local traders are uncertain whether they should hold, pre-emptively sell, or even buy in during the holiday.

Trading volumes on the South Korean crypto exchange Upbit over the previous year. (Source: CoinGecko)

This year, Lunar New Year falls on January 29. However, in South Korea – as the days preceding and following New Year’s Day are also public holidays – most companies are also giving their staff time off on Monday (27) and Friday (31).

This means that, including the two weekends, most staff have nine days off this year. While the South Korean stock market will be inactive during the holidays, the 24/7 nature of crypto means no such slowdown is expected in the coin markets.

The media outlet mentioned that Upbit crypto exchange data shows home Bitcoin and Ethereum (ETH) costs trended upward “during the Lunar New Year vacation for the previous three years.”

Korea began the Lunar New Year vacation with scattered rain and snow flurries on Monday, though most areas have seen only a few snowflakes.
https://t.co/DxMw9syGcV

— The Korea JoongAng Daily (@JoongAngDaily) January 27, 2025

Holiday Uncertainty for Traders

Kim (first name withheld) is a Seoul-based crypto trader. He told Cryptonews.com that the holiday period would likely be filled with “uncertainty” this year. Kim said:

“It will be a bit of a nail-biting time if the Fed or US President Donald Trump make announcements. In that case, the South Korean market will probably react fast. But traders are always ready for volatility in the markets. We just have to stay alert. That’s the nature of trading crypto.”

The holiday period, however, has also seen significant drops. These have included instances of day-on-day drops of up to 5%.

The top 5 coins per trading volume on the South Korean crypto exchange Bithumb on January 27, 2025. (Source: CoinMarketCap)

For South Korean traders, almost everything will hinge on events in the USA, the media outlet reported.

Home regulators and politicians are unlikely to make any major announcements during the holidays.

So events in Washington will likely be the driving force behind any price actions on local platforms.

Seoul Shinmun noted that “since the election of Trump,” interest “in cryptocurrency investment has increased in South Korea.”

The Fed is broadly expected to freeze its current benchmark interest rate of 4.25-4.50% at the Federal Open Market Committee meeting, which kicks off on January 28.

South Korea is undergoing an unprecedented political crisis with impeached President Yoon facing one legal proceeding that could oust him from office and another that brings a possible death penalty. Here’s what to know. https://t.co/jKB92C62QD

— Bloomberg Politics (@bpolitics) January 27, 2025

Experts Speak

The crypto service provider Matrixport told the same media outlet:

“Over the past 12 years, Bitcoin has risen 11 times during the Lunar New Year holiday period. Negative factors such as the Fed’s hawkish stance are putting downward pressure on the markets. But positive factors, like expectations about a forthcoming strategic Bitcoin reserve in the US, are supporting BTC prices. So there’s a high chance of an increase in the days following the Lunar New Year holiday.”

An unnamed local crypto exchange employee told Seoul Shinmun:

“Since Trump’s election, market liquidity has increased rapidly. And South Korean trading volumes here have increased to a level surpassing that of the stock market. The crypto market operates 24 hours a day and is highly volatile. So people would be wise to take a cautious approach.”

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