The historic plunge of the Korean stock market is triggering interesting reactions in the cryptocurrency market. Looking at this trend, it’s clear how much Korean individual investors are rotating between risk assets.

The KOSPI index crashing 20% in just two trading days is a pretty shocking move, but right after that, Bitcoin rebounded past $73,000. The timing is almost too perfect. Over the past few months, Korean retail traders flooded into AI-related stocks, causing the KOSPI to rise about 180%, but once that heat cooled off, attention shifted to cryptocurrencies.

I think this kind of market psychology shift is unique to the Korean market. Unlike other markets, Korea is one of the few where individual investors hold the reins in both digital assets and stocks. Last November, there was an analysis called the “Great Korean Pivot,” which referred to the period when individuals shifted from cryptocurrencies to stocks. Now, it’s likely the opposite is happening.

However, what’s worth noting is the level of the Kimchi Premium. It’s currently around 1%, but compared to past cryptocurrency bubble periods, that’s quite modest. If Korean demand were truly surging, the premium would be much higher, but so far, there’s no sign of overheating. Ethereum has also risen 1.77%, and Solana is moving, but it’s more like a moderate recovery.

Another point of interest is the movement of the WLFI token. Since mid-January, this asset has been quite volatile, but the recent decline seems to be due to issues with lending strategies, shaking investor confidence. There are also concerns about increasing circulation risks, and if the crypto bubble reignites, tokens with such problems could be among the first to undergo correction.

Ultimately, looking at the Korean market, it seems individual investors aren’t completely avoiding risk assets—they’re just shifting into other markets. When stocks cool off, they move into cryptocurrencies; when they get bored with crypto, they switch back to stocks. It’s a cycle. Based on this trend, at least in the short term, the crypto sector is likely to continue attracting attention. However, given the current level of the Kimchi Premium, it’s not yet a full-blown crypto bubble. It’s prudent to watch the developments calmly.