The new bond king guessed wrong! The real promoter of Bitcoin may be a Korean aunt, who is willing to pay twice the price to buy it!

Bitcoin is soaring, and Jeffrey Gundlach, the "new bond king", speculated a few days ago that the speculators behind it might be Chinese aunts. However, there are signs that the biggest pushers may be Korean aunts.

CoinTelegrap reported on the 25th that the demand for Bitcoin in South Korea is hot, and investors are offering unprecedented premiums to buy it. According to data from the local Bitcoin trading platform Coinone, the highest asking price for Bitcoin reached 5,025,000 won (about 4,494 US dollars). In contrast, the highest price of Bitcoin on the 25th was only 2,791.70 US dollars.

The premium of Bitcoin in South Korea is unprecedented. A few weeks ago, Japanese people were buying Bitcoin crazily, driving up the price. However, the highest price quoted by Japanese trading platform bitFlyer was only 333,2000 yen (about 2,980 US dollars). The exaggerated situation in South Korea has caused heated discussions on the Internet. Some netizens believe that someone is making a large arbitrage, while others say that the Korean economy is a debt-driven bubble.

Bitcoin.com explained the bitcoin craze in South Korea by pointing out that the rise of new financial entrepreneurs in the country has led to a surge in demand. Seoul authorities are quite friendly to digital currencies and announced that starting June 18, they will lower the equity capital threshold for bitcoin remittance companies from 2 billion won (about 1.8 million U.S. dollars) to 1 billion won.

Meanwhile, the Bank of Korea (BOK) is also optimistic about Bitcoin. The Bank of Korea and Hongik University reported that the rise of virtual currencies has ushered in an era of dual currencies, where digital currencies with no intrinsic value coexist with legal tender.

Traditional domestic trading platforms and virtual currency trading platforms are basically in a state of "keeping out of each other's way". This means that virtual currency traders can only "put their eggs in one basket", and at most switch between Bitcoin, Ethereum, Litecoin and other currencies. This cannot maximize the diversification of investments and control risks. On WEEX's cooperative platform eToro , it is easy to realize the need to diversify risks while investing in virtual currencies, providing more than 900 European and American stocks, Chinese stocks, 49 foreign exchange, 53 ETF funds and 7 commodities and other diversified investment products.

Image source: eToro , data as of May 23, 2017

It is widely rumored in the Korean IT industry, financial technology community, and social networking sites that investing in "Ether" can make five times the profit in a month. Ethereum and other alternative virtual currencies must be traded with Bitcoin, so investors may buy Bitcoin crazily, pushing up the price of Bitcoin.

Some analysts have put forward a simple explanation for the dramatic rise of Bitcoin. IG Chief Market Strategist Chris Weston posted on Twitter that Bitcoin trading is the "mother of all fear of missing out trade", that is, investors are afraid of missing out on the rise, so they rush in and drive the rise.

IG Group is one of the few traders that can trade Bitcoin and allocate other assets, and is also the world's leading CFD broker.

Gundlach said on Twitter on the 23rd that Bitcoin has soared 100% in less than two months, while the Shanghai Composite Index has plummeted nearly 10% during the same period, while global stock markets have mostly risen. He believes that this is probably not a coincidence.

CNBC and MarketWatch reported on May 2 that Japanese buyers were the driving force behind the surge in Bitcoin. CoinDesk research analyst Alex Sunnarborg said that Bitcoin trading volume is large worldwide, with Japan and the local bitFlyer trading platform being the most active. CoinDesk analyzed Bitcoin trading in the past 24 hours and found that half of the trading volume occurred in Japan.