BTC is More Stable Than Korean Stocks, as AI Hype Cools Sparking Market Turmoil and Soaring Volatility
Odaily reports that as the AI investment frenzy cools, the South Korean stock market has experienced sharp fluctuations recently, with its risk level even surpassing that of Bitcoin, long considered a highly volatile asset. Data shows that the Korea Composite Stock Price Index (KOSPI) has fallen nearly 25% over the past four weeks, significantly impacted by the ebbing AI craze. Options market data indicates that the KOSPI 30-day implied volatility (IV) index has surged to an annualized 81%, more than double the Bitcoin volatility indicator BVIV, which sits around 38%.
South Korean retail investors had previously heavily leveraged margin trading and leveraged ETFs to bet on AI-related stocks, triggering large-scale forced liquidations amid the high-volatility environment. According to statistics, the scale of related liquidations has exceeded $2 trillion in less than the past three months. Analysts point out that the South Korean stock market's volatility surpassing Bitcoin may reflect that the risk appetite driven by the global AI investment frenzy has reached extreme levels.
For Bitcoin proponents, BTC's volatility being lower than the KOSPI is seen as a significant signal of market maturation. However, Bitcoin's risk level remains substantially higher than traditional assets, with its 30-day volatility roughly double that of the S&P 500's VIX (which is below 20%).
Bitcoin prices are currently under pressure, trading below the closely watched 50-day moving average. However, on-chain data firm Nansen indicates that amid recent geopolitical tensions, the wallets that typically move large sums of capital first have not shown a significant shift towards stablecoins. Nansen research analyst Nicolai Sondergaard noted that this situation mirrors market behavior during the escalation of tensions in the Middle East: "Short-term leveraged longs were liquidated, after which capital began to accumulate again."
Meanwhile, the market is focused on upcoming regulatory hearings in Washington D.C. Marex analysts pointed out that the
