Korean Investors Ditch Bitcoin for AI Chips as Stock Market Soars

In 2025, South Korean investors have abandoned cryptocurrency trading, witnessing a decline of up to 80% on platforms like Upbit and Bithumb. The KOSPI index, however, has surged more than 70%, driven by the success of AI chip manufacturers such as Samsung Electronics and SK hynix. This shift signifies a move from crypto speculation to equity investments, with millions of new retail investors entering the stock market, driven by a state-backed rally in AI stocks. Trading volumes in crypto have notably dropped, with Upbit's daily transactions plummeting from approximately $9 billion to $1.8 billion. Amid this transition, speculative trading has transferred to stocks, particularly among younger investors embracing margin lending and leveraged ETFs. The rally in stocks is bolstered by the government's reforms encouraging local investments. Analysts suggest this migration reflects a reallocation of risk appetite rather than a retreat from speculative trading. The loss of retail liquidity in crypto markets has been palpable, with major altcoins struggling in the absence of Korean traders, although speculations indicate that this trend may reverse as new narratives in crypto emerge.

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