Analysis: The positive correlation between the South Korean stock index and Bitcoin prices has been broken, with funds shifting from the stock market to the cryptocurrency market
ChainCatcher news, according to a report by Wall Street Watch, Asian stock markets have shown mixed performance this year against the backdrop of a strong dollar. Some have achieved a bull market in local currency at the cost of currency depreciation, while others have sacrificed part of their stock market gains for relatively stable exchange rates, with South Korea being an exception.In terms of the Korean won, the Korea Composite Stock Price Index (KOSPI) has fallen by 10.0% this year. Considering the depreciation of the won, the KOSPI has dropped by 18.9% when measured in dollars, making it the weakest in Asia. From the perspective of capital flow, since the second half of this year, only institutional investors in South Korea have maintained a net buying scale in the stock market, while the resident sector has been continuously reducing purchases.Analysis suggests that a significant portion of the money that South Korean residents have withdrawn from the stock market has been used for "crypto trading." Data from the Bank of Korea (BOK) shows that as of November, the number of domestic cryptocurrency investors in South Korea has reached 15.59 million, an increase of 610,000 from the previous month. Currently, among the 51 million South Koreans, 30% are involved in crypto trading.The daily trading volume of South Korea's five major cryptocurrency exchanges—UPbit, Bithumb, Coinone, Korbit, and GOPAX—has surged from 34 trillion won in October to 149 trillion won in November, more than quadrupling. South Koreans have always been keen on investing in cryptocurrencies. During the first wave of the cryptocurrency bull market in 2017, about 5% of the population participated; in the second bull market in 2021, 10% participated; and now this proportion has expanded to 30%. However, historically, the South Korean stock index has shown a positive correlation with Bitcoin prices, which was completely broken in October of this year.