South Korea crypto trading jumps 82% as KOSPI triggers circuit breaker

Crypto trading in South Korea stayed elevated as a sharp selloff in local equities appeared to push investors toward digital-asset markets and other liquidity channels. Combined volume on five major exchanges reached $964 million on July 28, up 82% from the previous month’s daily average, before later falling to $144 million while remaining above the week’s lows. The move came as the KOSPI, South Korea’s benchmark stock index, dropped more than 20% over five days in a semiconductor-led selloff, triggered circuit breakers and shed about 864 trillion won in market value between July 28 and 29. Upbit led the jump in activity, with KRW-USDT trading rising 600% from $20 million to nearly $140 million and the exchange’s total volume climbing from $292.7 million to about $743 million before retreating. Bithumb’s trading volume rose 438% from $81 million to $436 million. Analysts and local media offered competing explanations for the surge, ranging from capital rotating into digital assets to crypto being sold or converted into liquid instruments to meet margin obligations or move funds overseas to trade Korean equity derivatives. The stock market later staged a sharp rebound, with Crypto Rover estimating that 720 trillion won returned during the recovery and the KOSPI rising 18.27% to 6,615.60, up 1,022.04 points. If traders follow that recovery, crypto volumes could cool from recent highs.