South Koreans Pull $41B From Crypto as Bitcoin Slump Pushes Cash Into Stocks

"The value of virtual assets held by domestic investors in South Korea has plummeted by more than $41 billion (60 trillion won) over the last year, as a cooling crypto market prompted a mass migration of capital toward traditional equities. According to Bank of Korea data reportedly submitted May 10 to Rep. Cha Kyu-keun of the Rebuilding Korea Party, the total valuation of domestic virtual assets stood at approximately $41.17 billion as of the end of February. The decline marks a staggering reversal from the market's peak in January 2024, when holdings reached $82.76 billion."

"In just over 12 months, the total value of these digital portfolios has been slashed by more than half. The retreat from the crypto sector is further evidenced by a sharp contraction in trading volume and liquidity. According to a local report, during the period under review, average daily trading volume, which surged to $11.62 billion in December 2024, fell to just $3.06 billion by February 2025. Won-denominated deposits often viewed as waiting funds for future crypto purchases dropped from $7.27 billion in late 2024 to $5.30 billion in February."

"Analysts attribute this exodus to a perfect storm of a bullish global stock market and a simultaneous downturn in major cryptocurrencies like bitcoin. While the broader crypto market faced a sell-off, stablecoins saw a significa"

Domestic virtual asset holdings by South Korean investors fell by more than $41 billion, dropping over 50% to about $41.17 billion by the end of February 2026. Holdings declined from a January 2024 peak of about $82.76 billion. The cooling market coincided with reduced trading activity, with average daily trading volume falling from about $11.62 billion in December 2024 to about $3.06 billion by February 2025. Won-denominated deposits that can serve as waiting funds for future crypto purchases also decreased from about $7.27 billion in late 2024 to about $5.30 billion by February. Analysts link the shift to a strong global stock market and a downturn in major cryptocurrencies such as bitcoin.

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