According to Bloomberg, the rapid rise of BTC since Trump's election has put pressure on South Korea's small-cap stock market. Analysts point out that part of the reason is that small investors are selling stocks to turn to BTC, resulting in a roughly one-fifth drop in the stock index this year. Due to the poor performance of the Kosdaq market, investors are flocking to the cryptocurrency market. South Korea's ban on cash Bitcoin ETFs has prompted investors to bet on leveraged funds related to cryptocurrency futures.
The market may see some relief from excessive bets on the surge of cryptocurrencies. ProShares UltraShort Bitcoin ETF allows investors to short BTC with leverage. South Korean investors are also preparing for further pressure on stock prices. At the end of last year, regulators unexpectedly announced a ban on short selling, leading to a brief market recovery.
