Korean liquidity may be shifting from stocks to crypto, analyst says

Liquidity in South Korea may be shifting from the stock market to the cryptocurrency market, crypto analyst Bull Theory argued on X. The analyst noted that while the KOSPI index rose 80% in four months, Bitcoin fell 52% over the same period. This rally in Korean stocks eventually became overheated, with a surge in leverage and ETF trading volume. However, Bull Theory explained that the trend is now reversing, with foreign investors exiting the Korean stock market at a record-breaking pace. Foreigners sold $13.7 billion worth of Korean stocks in February, and the KOSPI has fallen about 20% over the last five days. In contrast, BTC has risen 11% since the KOSPI began its decline, suggesting that liquidity is flowing back into the crypto market. Meanwhile, the KOSPI, which closed at 5059.45 yesterday after a 12.06% drop, is currently trading at 5633.10, a rebound of about 10.59%. Trading curbs on buy orders have been activated for both the KOSPI and KOSDAQ markets.