South Korea Crypto Trading Plummets as AI Stocks Rally
South Korea’s crypto trading volume has plunged as retail investors pivot to the booming stock market. Upbit’s daily crypto trading volume dropped 80% year-on-year to $1.78 billion in November 2025, while Bithumb saw a 69% fall to $890 million. Google search interest in “Bitcoin” also fell by 66% from its late-2024 peak. Meanwhile, the KOSPI index surged over 72% year-to-date, driven by AI semiconductor stocks. Samsung Electronics and SK Hynix rallied 100% and 240% respectively, fuelled by record HBM chip demand and robust earnings.
Government reforms on dividends, buybacks and capital gains tax cuts have attracted domestic funds to the stock market. Margin trading on Korean equities has soared, mirroring past leverage-driven crypto booms. As traders exit altcoins, digital assets from BTC to DOGE and PEPE face dwindling liquidity. The shift underscores the contrast between performance-backed AI stocks and sentiment-driven crypto. Near-term bearish pressure on crypto markets remains until a new catalyst emerges to reignite trader interest.
Bearish
The drastic drop in crypto trading volume on major Korean exchanges indicates a significant outflow of capital from digital assets into performance-backed AI stocks. Short-term, this shift reduces liquidity and buying pressure on coins like BTC, DOGE and PEPE, sustaining bearish momentum. Longer-term, unless a new market catalyst—such as regulatory clarity or renewed institutional interest—appears, traders are likely to remain on the sidelines, maintaining downward pressure on prices.