Bitcoin has surged rapidly, putting pressure on South Korea's small-cap stocks. Since Trump won the election on November 5, Bitcoin has skyrocketed nearly 35%, while the KOSDAQ index, which is dominated by small-cap stocks, has dropped 8%, potentially becoming the worst-performing index in Asia this year. Analysts say part of the decline is due to small investors selling stocks to invest in Bitcoin, exacerbating the index's approximately one-fifth market cap loss this year. Currently, the trading volume on South Korean cryptocurrency exchanges has surpassed that of the benchmark KOSPI index. NH Investment & Securities digital asset analyst Hong Songuk stated that due to the ban on Bitcoin spot ETFs in South Korea, investors are flocking to leveraged funds engaged in Bitcoin futures trading, while other investors are buying shares of MicroStrategy (MSTR.O).

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