A recent claim by Kim Min-seung, head of the Korbit Research Center at the South Korean crypto exchange Korbit, has sent ripples through the cryptocurrency world. Kim suggests a paradigm shift in the forces influencing Bitcoin (BTC) prices, with US stock traders now potentially exerting a more significant influence than ever before.

Traditionally, Bitcoin price movements were largely driven by the activities of Bitcoin miners, responsible for creating new coins, and "whales," individuals or entities holding substantial amounts of BTC. However, Kim argues that the landscape has undergone a transformation in recent months.

A pivotal event, according to Kim, was the US Securities and Exchange Commission's (SEC) decision to greenlight Bitcoin spot exchange-traded funds (ETFs) in January. This, he contends, has ushered in a "market dynamic" centered around stock market traders. Research suggests that Bitcoin prices have become notably "sensitive to trends in US spot ETFs," indicating a potential correlation between the two markets.

While "macro market factors" such as interest rates, global health crises, government policies, and geopolitical conflicts were once considered dominant forces shaping the Bitcoin market, the impact of the SEC's approval appears to be eclipsing these traditional influences. Kim posits that a domino effect has been triggered, with crypto market trading bots strategically "buying and selling" based on the activities of US stock traders and patterns observed in Bitcoin ETF trading.

"Over the past few months," Kim observes, "Bitcoin tends to rise or fall during US stock market trading hours. These same trends are being repeated during Asian market hours. The approval of BTC spot ETFs seems to be a key factor driving this phenomenon."

Further complicating the picture is the upcoming Bitcoin "halving" event, scheduled for later this month. This software code update, often touted as a catalyst for price hikes, may already be partially reflected in current pricing, according to the head of the largest US crypto miner.

The influence of US stock market activities extends beyond the spot market, with Kim noting similar patterns emerging in Bitcoin and crypto futures markets, potentially leading to "the liquidation of long and short positions."

Kim's analysis aligns with predictions made by other South Korean analysts who anticipate an influx of "additional institutions" entering the crypto market. This could have a profound impact on the South Korean Bitcoin market, currently dominated by retail investors. While many institutional investors and funds have expressed interest in BTC, regulatory hurdles have thus far restricted their access.

In conclusion, Kim emphasizes that the combined effect of the aforementioned factors, along with the approaching halving event, is likely to create a "synergy" that could propel Bitcoin prices upwards. This analysis comes amidst the backdrop of South Korea's recent parliamentary elections, where the Democratic Party appears poised for a decisive victory. One of their key election promises was to exert pressure on regulators to approve South Korean Bitcoin and altcoin ETFs, potentially adding another layer of complexity to the evolving dynamics influencing Bitcoin's price trajectory.