Bank of Korea Announces South Korean Virtual Asset Market is More Sensitive to U.S. Stock Market

According to research by the Bank of Korea, the domestic virtual asset market reacts more sensitively to movements in the U.S. stock market than to the KOSPI. When the S&P 500 moves by 1%, Bitcoin shows a movement of about 0.57%, while Ethereum moves by about 0.80%. The study compared trading data of Bitcoin and Ethereum in the Upbit won market from April 16, 2024, to April 29, 2026, with the returns of the S&P 500 and KOSPI. The analysis revealed that when the S&P 500's returns move by 1 percentage point, Bitcoin moves by 56.76 basis points, and Ethereum by 79.88 basis points. In contrast, when the KOSPI moves by 1 percentage point, Bitcoin only moves by 10.14 basis points, and Ethereum by 12.52 basis points. The correlation with the U.S. stock market was about 5.6 times greater for Bitcoin and about 6.4 times greater for Ethereum compared to the KOSPI. During U.S. stock market trading hours, Bitcoin's volatility ranged from 11.07 to 19.06 basis points, which was higher than the 4.93 to 10.74 basis points observed during Korean stock market trading hours, with Ethereum showing a similar trend. The researchers analyzed that this phenomenon is due to the rapid reflection of information from the U.S. stock market on domestic digital asset prices. The Bank of Korea explained that these results provide important implications for monitoring financial stability in the digital asset market.

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