South Korea's crypto volume jumps 82% in stock market rout

Two explanations emerged for the crypto volume spike. PredictiveMoney said some investors rotated capital into digital assets as a haven alternative. The analyst pointed to the 82% exchange-volume increase and rising USDT activity as evidence. The data did not confirm that equity capital directly entered crypto, PredictiveMoney said.

Seoul Economic Daily offered a different read. Crypto holders may have sold assets to meet margin obligations elsewhere, the report said. Others may have moved funds overseas to trade Korean equity derivatives. The volume spike likely reflected both defensive positioning and liquidity demand, the reports suggested.

South Korean stocks later staged a sharp recovery. Crypto Rover estimated that 720 trillion won returned to the market during the rebound. At press time, the KOSPI had risen 18.27% to 6,615.60, recovering much of the previous decline.