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The trading volume of South Korean exchanges has reached a historic low.
CryptoQuant CEO Ki Young Ju said that the South Korean stock market index KOSPI has reached an all-time high, but the trading volume of cryptocurrency exchanges has fallen to a historical low. This indicates that the money from South Korean retail investors has gone to the stock market, draining the crypto market.
Ki Young Ju believes this is related to the South Korean president’s active promotion of the stock market, as he aims to shift speculative activities from real estate to the stock market. This strategy is indeed effective, but it is bad news for the crypto market — liquidity has been redirected by policy.
South Korean retail investors have always been an important force in the crypto market, and the shrinking trading volume indicates weak inflow of new funds and a decline in market enthusiasm. This poses a long-term challenge to the liquidity structure of the Asian market, especially under regulatory and policy guidance, as the attractiveness of the crypto market may continue to decline in certain regions.