South Koreans Bet Big on XRP, Dogecoin as Easing Trade War Fuels Risk Taking

South Korean retail traders are driving a surge in XRP and Dogecoin (DOGE) trading volumes, exceeding those of Bitcoin (BTC) and Ether (ETH) in the past 24 hours. This significant increase reflects a renewed risk-on sentiment among speculative traders, fueled by easing U.S.-China trade tensions and expectations of potential interest rate cuts later this year.

Both XRP and DOGE have seen remarkable gains, climbing over 15% in the past week, outperforming Bitcoin’s 10% rise. Ether’s performance has been even more impressive, soaring nearly 40%, its largest weekly gain since 2021. This surge is attributed to a combination of factors, including a massive $1 billion short squeeze last week, forcing the liquidation of overleveraged positions. Augustine Fan, head of insights at SignalPlus, describes this as a “classic market short-squeeze against an exceptionally one-sided market,” emphasizing the lack of significant Ether ETF inflows, suggesting the rally was primarily driven by native market positioning.

UpBit, South Korea’s largest exchange by trading volume, reported XRP/KRW and DOGE/KRW 24-hour volumes exceeding $250 million, significantly surpassing Bitcoin and Ether’s combined volume of under $150 million. This pattern mirrors past periods of exuberant retail activity in Korea’s crypto market, often referred to as the “Kimchi premium” era, characterized by aggressive investment in high-volatility assets. The Korean market’s reaction often serves as a leading indicator of broader retail sentiment.

The improved geopolitical climate, marked by a recent agreement between U.S. and Chinese officials to significantly reduce tariffs on certain goods, further contributes to the positive sentiment. Jeff Mei, COO of BTSE, notes that investors’ concerns regarding crypto are diminishing due to the trade talks’ resolution and the increasing likelihood of rate cuts. A dovish pivot by the Federal Reserve next month could potentially propel Bitcoin beyond its all-time high and stimulate lending and investment within the U.S. economy.

While institutional ETF flows and upcoming central bank guidance in June remain key factors to monitor, the current short-term momentum strongly suggests that altcoin speculation is driving the market’s upward trajectory. The situation underscores the significant influence of retail sentiment, particularly in the South Korean market, on cryptocurrency price movements.