Korean Investors Cashed Out This Year, BOK Says: Global Implications

The Bank of Korea's Financial Stability Report indicates a significant behavioral change among South Korean cryptocurrency investors, who are now strategically taking profits rather than aggressively accumulating, even as Bitcoin prices surged. This shift is partly attributed to the booming domestic stock market, particularly AI-related stocks, which has drawn capital away from crypto platforms, causing trading volumes to collapse by over 80% from 2024 peaks. Historically, Korean trading volume has significantly influenced global markets, often indicated by the 'Kimchi Premium,' but this profit-taking behavior may have contributed to a more measured pace in the 2025 rally. The Korean market remains highly concentrated, with the top 10% of investors accounting for over 91% of trading volume, and is dominated by retail traders due to regulatory restrictions on corporate and foreign participation. The BOK suggests that ongoing regulatory reforms, including allowing professional investors to trade and discussions around a spot Bitcoin ETF, could lead to institutionalization, which might stabilize volatility but also make prices more sensitive to supply-demand shifts.

(Source：BeInCrypto)