"What to Do with Idle Coins?"... Virtual Asset Trading Volume Declines as KOSPI Surges [Bitcoin Now]

Monthly Trading Volume Declines After Peaking in June
Liquidity Shifts to Stock Market Amid Rising Global Uncertainty

Domestic virtual asset trading volume continues to decline. This is interpreted as a result of both the price correction of major virtual assets such as Bitcoin and a shift in liquidity to the stock market, as the KOSPI surpasses 4,000 points and the market remains bullish.

According to CoinGecko, a virtual asset market analysis site, the combined trading volume of the five major domestic virtual asset exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) from October 1 to 27 amounted to 109.26314 billion dollars (approximately 157 trillion won). This represents a 12.63% decrease compared to September this year, when the figure stood at 125.05846 billion dollars (about 179 trillion won).

The trading volume at domestic virtual asset exchanges has continued to shrink, falling from 160.23098 billion dollars (about 230 trillion won) in July this year to 136.06213 billion dollars (196 trillion won) in August, and continuing to decline since then.

Domestic virtual asset trading volume continues to decline. Yonhap News Agency

One of the reasons for the decline in trading volume is the slowdown in the prices of major virtual assets such as Bitcoin. October is typically known as "Uptober," a period when Bitcoin prices tend to rise. However, this year, after reaching 126,000 dollars (about 181 million won) in early October, Bitcoin underwent a correction and is currently fluctuating between 104,000 dollars (150 million won) and 116,000 dollars (166.72 million won).

There are two main reasons cited for Bitcoin's sideways movement. First, the approval of an altcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), which was expected to be granted this month, has been delayed. Additionally, concerns over the intensifying U.S.-China trade dispute have led to the liquidation of approximately 19 billion dollars (about 27 trillion won) that had been invested in virtual assets, significantly weakening investor sentiment.

Another reason is the continued upward trend of the KOSPI. While Bitcoin and other virtual assets have been moving sideways, the KOSPI surged from the 3,450 level on October 1 to surpass 4,000 on October 27. During this period, KOSPI trading volume reached 254 trillion won.

An official from the virtual asset industry stated, "Contrary to expectations for Uptober, growing global uncertainties have clearly contracted trading in the virtual asset market," adding, "As the decline in trading volume compared to the stock market has become more pronounced, investor sentiment has become even more conservative."

The official continued, "The strengthening of risk aversion following large-scale liquidations has also had a considerable impact," and explained, "There are mixed outlooks for the end of the year, but the direction of policy and whether liquidity recovers are likely to determine the market trend."