AI Chips Boom

AI Chips Boom

#Korean #Investors #Ditch #Bitcoin #Chips #Stock #Market #Soars #OrxCash

Korean Retail Investors Shift Focus from Crypto to AI Chips

For years, South Korea was the epicenter of blockchain speculation, with retail investors driving the market with their enthusiasm for digital coins. The "Kimchi Premium" became a widely recognized term, symbolizing the country’s obsession with cryptocurrency trading. However, by late 2025, the landscape has changed dramatically. The same traders who once dominated the crypto scene are now flocking to the Korean stock market, drawn by the allure of AI-linked companies and high-bandwidth semiconductors.

A Market in Decline

The data speaks for itself: average daily volumes on Upbit have plummeted by nearly 80% in just a year, from $9 billion in late 2024 to $1.8 billion by November 2025. Bithumb, the country’s second-largest exchange, has also suffered a significant decline, losing over two-thirds of its liquidity. The once-thriving crypto community has all but disappeared, with daily volumes now hovering between $2 billion and $4 billion, a far cry from the $5 billion to $27 billion range seen in previous years.

Rise of a New Obsession

The void left by crypto has been quickly filled by the Korean stock market, which has experienced an explosive rally. The KOSPI index has surged over 70% year-to-date, with AI-linked giants like Samsung Electronics and SK hynix leading the charge. The frenzy has been fueled by the growing demand for AI hardware, with Korean firms playing a critical role in the supply chain. Key statistics include:

  • The KOSPI index has set multiple record highs
  • October saw the strongest monthly gain since 2001, with a 21% increase
  • The number of active trading accounts in the nation has jumped from 86.57 million to 95.33 million

Speculation Continues, Just in a Different Form

The migration from crypto to equities is not a retreat, but rather a reallocation of risk appetite. Koreans have not abandoned speculation; they have simply found a new venue where the leverage feels legitimate and the upside is patriotic. Margin lending is booming, and leveraged ETFs are in high demand, with retail participation doubling in just a year. According to Bloomberg data, leveraged retail positions now make up nearly 30% of total holdings, with younger traders leading the charge.

Implications and Future Outlook

The shift from crypto to AI chips has significant implications for the market. Without Korean retail as a liquidity anchor, global crypto markets have lost a consistent buyer. Memecoin rallies that once lit up Korean chatrooms now fizzle faster, and the wider market is in need of a spark. Bitcoin (BTC) currently trades around $100,000, despite recording an all-time high just a month ago, while several altcoins have lost upwards of 20% over the past month.

From a broader market perspective, this shift highlights the evolving nature of retail investor behavior. As the AI narrative continues to dominate the market, it will be interesting to see how investors adapt and respond. Will the AI trade cool down, allowing crypto to regain its footing, or will new narratives emerge to capture the attention of retail investors? One thing is certain – the retail investor community remains a driving force in the market, and their actions will continue to shape the landscape of both crypto and traditional assets. As the market continues to evolve, it’s essential to stay informed and adapt to the changing tides.

Finance,South Korea,kimchi premium,AI,Artificial Intelligence,News
While we strive for accuracy, always double-check details and use your best judgment.
image source: www.coindesk.com