The cryptocurrency market is facing a renewed sense of unease, with the odds of a significant bitcoin (BTC) price correction increasing sharply amid escalating trade tensions and inflation concerns. 

Prominent asset management firm 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Polkadot exchange-traded fund (ETF) in the country. 

South Korea’s so-called bitcoin kimchi premium has surged to a 10-month high amid the recent cryptocurrency market downturn, suggesting significant resilience in South Korean exchanges amid the sell-off.

Top stories in the Crypto Roundup today:

• Bitcoin Outlook Clouded by Tariff Tensions, Inflation Fears
• 21Shares Files for Spot Polkadot ETP With SEC
• South Korea’s Bitcoin ‘Kimchi Premium' Surges to 10-Month High

Bitcoin Outlook Clouded by Tariff Tensions, Inflation Fears

The cryptocurrency market is facing a renewed sense of unease, with the odds of a significant bitcoin (BTC) price correction increasing sharply amid escalating trade tensions and inflation concerns. 

Derixe.xyz, a platform for on-chain options trading, shows a 22% probability of bitcoin’s price dropping to $75,000 by March 28, more than double the 10% seen just last week. The shift comes amid the recent import tariff war between the U.S. and its key trading partners, including Canada, Mexico, and China.

The tariffs, according to market analysts, could fuel inflation, complicating central banks’ efforts to lower interest rates and dampening investor sentiment in cryptocurrency markets. The impact of the dispute is being felt across various asset classes. Andre Dragosch, head of Europe at Bitwise, said on social media the tariffs are sending shock waves by strengthening the U.S. dollar and contracting the global money supply.

Bitcoin is down more than 8% over the past week to now trade at $95,155, while the second-largest cryptocurrency by market capitalization, Ethereum’s ether, is down some 18% in the same period to now stand at $2,550.

The cryptocurrency appears to be forming a double-top reversal pattern, which could see it drop to $75,000. The move would be consistent with a recent prediction from Arthur Hayes, chief investment officer of Maelstrom and former BitMEX CEO, who said the cryptocurrency will drop to that level before embarking on a bigger bull run.

21Shares Files for Spot Polkadot ETP With SEC

Prominent asset management firm 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Polkadot exchange-traded fund (ETF) in the country. 

In a Jan. 31 filing, 21Shares outlined its plan to list the 21Shares Polkadot Trust on the Cboe BZX exchange, with Coinbase serving as the custodian for the DOT tokens of the fund. The move comes four years after the firm launched a similar product in Switzerland’s SIX exchange, which was the first Polkadot ETP in the world.

The filing points out there’s no guarantee of Polkadot’s future price performance either in the short or long term and outlines specific risks associated with the Polkadot network. These include the possibility of an increase in the DOT supply or the risk of the token being classified as a security under federal laws.

The Web3 Foundation, which supports the Polkadot protocol, argued back in 2023 that it has taken steps to manage the distribution of DOT to prevent any single entity from owning a disproportionately large percentage of its supply.

South Korea’s Bitcoin ‘Kimchi Premium' Surges to 10-Month High

South Korea’s so-called bitcoin kimchi premium has surged to a 10-month high amid the recent cryptocurrency market downturn, suggesting significant resilience in South Korean exchanges amid the sell-off.

Data from CryptoQuant shows that the kimchi premium surged to 9.7% for bitcoin in the early trading hours of Monday, its highest level since April 2024, when it briefly surpassed 13%. While the premium has since receded slightly to a little over 8%, its persistence underscores the steadiness of BTC on these exchanges.

The kimchi premium reflects the price difference between bitcoin traded on South Korean exchanges and elsewhere and stems from the South Korean cryptocurrency market being closed off to foreign investors. Local investors who buy large amounts from foreign exchanges to take advantage of the price differences may be punished under capital controls regulations.

State of the Crypto by Top Tier Exchange Volume

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