South Korean retail investors pivot from crypto to stocks, trading volume plummets

Average daily trading volume on South Korea's Upbit exchange fell to $1.78 billion in November, marking an 80% decrease from $9 billion last December and the fourth consecutive monthly decline, Wu Blockchain reported. The range of volume has also narrowed significantly. During the market crash late last year, Upbit's daily volume fluctuated between $5 billion and $27 billion, but this year it has remained between $2 billion and $4 billion. A similar trend is evident on the Bithumb exchange. According to the analysis, this downturn reflects a broad contraction in sentiment among South Korean retail investors, whose capital has shifted to the stock market. This shift has contributed to a 72% rise in the KOSPI index this year. Wu Blockchain noted that for the past several years, South Korean investors have often been the last wave of buyers during altcoin seasons, participating in the parabolic rallies of assets like DOGE, PEPE, LUNA, and XRP. The crypto market may now have to wait for the current stock market enthusiasm to wane or for a compelling new narrative to emerge to attract these investors back.