Svmuu News: As the AI investment boom cools off, the South Korean stock market has recently experienced sharp volatility, with risk levels even exceeding those of the Bitcoin, which has long been considered highly volatile. Data shows that the Korea Composite Stock Price Index (KOSPI) has fallen nearly 25% over the past four weeks, clearly impacted by the waning AI rally.Options market data shows that the KOSPI 30-day implied volatility (IV) index has risen to an annualized 81%, more than double the Bitcoin volatility indicator (BVIV) of approximately 38%.
South Korean retail investors had previously bet heavily on AI-related stocks through margin trading and leveraged ETFs, triggering massive forced liquidations amid high volatility. According to statistics, the scale of related liquidations has exceeded $2 trillion in less than three months.Analysts point out that the fact that volatility in the South Korean stock market exceeds that of the Bitcoin may reflect that risk appetite, driven by the global AI investment boom, has reached extreme levels.
For supporters of Bitcoin, the fact that BTC volatility is lower than that of the KOSPI is seen as an important signal of increasing market maturity.However, Bitcoin remains significantly higher than the risk levels of traditional assets, with its 30-day volatility roughly double that of the S&P 500’s VIX (which is below 20%).
The current Bitcoin price remains under pressure, trading below the market’s closely watched 50-day moving average.However, on-chain data firm Nansen notes that amid recent geopolitical tensions, the wallets that typically initiate large-scale capital transfers first have not shown significant inflows into stablecoins. Nicolai Sondergaard, a research analyst at Nansen, stated that this situation mirrors market behavior during previous escalations in the Middle East: “Short-term leveraged long positions were liquidated, followed by a resumption of capital accumulation.”
Meanwhile, the market is focusing on the upcoming regulatory hearings in Washington, D.C. Marex analysts pointed out that the CLARITY Act is facing a critical test, and the crypto industry is awaiting clarity on the regulatory framework to drive further institutional capital into the market. (CoinDesk)