Why did South Korean crypto holdings fall by $41 billion?

South Korean investors reduced exposure to cryptocurrencies as weaker crypto prices and stronger stock market performance encouraged capital to shift into equities. Data from the Bank of Korea showed crypto holdings fell by more than half over roughly one year.

How much crypto do South Koreans still hold?

Domestic virtual asset holdings stood at approximately $41.17 billion by the end of February 2026. That was down sharply from around $82.76 billion at the market peak in January 2024.

How badly did crypto trading activity decline in South Korea?

Average daily crypto trading volume dropped from roughly $11.62 billion in December 2024 to about $3.06 billion by February 2025. The decline reflected weaker retail participation and lower market liquidity.

Why are South Korean investors moving money into stocks?

Investors have been attracted to stronger performance in domestic and global equity markets while cryptocurrencies struggled through a market downturn. Analysts described the shift as a rotation toward more stable and interest-generating assets.

What happened to bitcoin trading demand in South Korea?

Interest in Bitcoin weakened significantly as prices and trading activity cooled. Lower exchange deposits also suggested fewer investors were preparing to re-enter crypto markets.

What are won-denominated exchange deposits and why do they matter?

Won-denominated deposits are funds held on exchanges waiting to be used for crypto purchases. These deposits fell from around $7.27 billion to $5.30 billion, signalling weaker investor appetite for digital assets.

Why are stablecoins still growing despite the crypto downturn?

South Korean investors increasingly used stablecoins as a way to access dollar-denominated assets and hedge against currency volatility. Stablecoins are often viewed as less volatile than traditional cryptocurrencies.

How much did stablecoin holdings increase?

Stablecoin holdings reached a record high of about $592.7 million in December 2024 before easing to roughly $412.5 million in February. Even after the pullback, holdings remained more than double mid-2024 levels.

South Korean crypto holdings plunge $41B

Written by Jon CuthbertPublished May. 12 2026Last Updated May. 12 2026

South Korean investors reduced their cryptocurrency holdings by more than $41 billion over the past year as weakening digital asset markets pushed capital toward booming stock markets, according to data from the Bank of Korea.

The total value of domestic virtual asset holdings fell to approximately $41.17 billion by the end of February 2026, down from roughly $82.76 billion at the market’s peak in January 2024.

Trading activity across South Korea’s crypto sector also contracted sharply, with average daily trading volume declining from about $11.62 billion in December 2024 to roughly $3.06 billion by February 2025.

Won-denominated exchange deposits, often viewed as capital waiting to re-enter crypto markets, also dropped significantly from around $7.27 billion to $5.30 billion during the same period.

Analysts attributed the decline to a combination of stronger global equity markets and weaker cryptocurrency performance led by Bitcoin, which triggered broader investor rotation into traditional financial assets.

Despite the broader downturn, demand for dollar-linked stablecoins continued rising as South Korean investors increasingly sought protection from exchange rate volatility and access to dollar-denominated assets.

Stablecoin holdings reached a record high of approximately $592.7 million in December 2024 before easing to about $412.5 million in February, although the sector still more than doubled in value compared with mid-2024 levels.

At the time of reporting, Bitcoin price was $81,222.22.