South Korea’s crypto market is seeing a renewed surge in speculative trading, with retail investors rapidly rotating into high-volatility assets like XRP and Dogecoin as global risk appetite strengthens.

The buying spree comes on the heels of a massive $1 billion short squeeze that caught bearish traders off guard, alongside signs of geopolitical relief following a key U.S.-China trade breakthrough. South Korea, long known for its active retail crypto culture, is once again leading the charge as traders bet on further upside.

XRP and DOGE have jumped more than 15% over the past week, outpacing bitcoin’s gains and drawing the bulk of trading volume on domestic exchanges. Ether, meanwhile, has outshined all majors with a staggering 40% rally, its strongest weekly move since 2021.

“Altcoins are roaring back in South Korea as risk sentiment shifts dramatically,” said Augustine Fan, head of insights at SignalPlus. “We’re seeing intense short covering and renewed speculative interest in assets like XRP and DOGE.”

UpBit, the country’s largest crypto exchange, recorded XRP/KRW and DOGE/KRW volumes surpassing BTC and ETH pairs—a rare flip that underscores the speculative fervor. The spike is reminiscent of the “Kimchi premium” days, when Korean retail traders drove outsized price movements in global markets.

Contributing to the risk-on shift is a diplomatic breakthrough: over the weekend, U.S. and Chinese officials agreed to temporarily roll back tariffs, reducing duties on certain goods to 30% from 145%. The announcement eased fears of prolonged economic strain and bolstered confidence across equities and crypto.

“Traders are responding to a wave of bullish news, from easing trade tensions to speculation about Fed rate cuts,” said Jeff Mei, COO at BTSE. “That cocktail of optimism is reigniting interest in higher-beta crypto names.”

Despite the sharp moves, analysts caution that the rally remains fragile. A hotter-than-expected U.S. inflation report or any deterioration in global diplomacy could trigger renewed volatility. For now, however, momentum favors the bulls—especially in South Korea, where appetite for altcoins is once again running hot.