Bitcoin has struggled to gain traction amid various challenges, including U.S. interest rate hikes and delays in cryptocurrency legislation, leading to a prolonged winter for cryptocurrency-related stocks in South Korea.
According to the Korea Exchange, Woori Technology Investment closed at 5,750 won, down 0.86% from the previous trading day. This marks an 11.4% decline compared to its trading price a month ago (6,490 won). Woori Technology Investment is classified as a key cryptocurrency-related stock due to its stake in Dunamu, the operator of Upbit.
Another cryptocurrency-related stock, Hanwha Investment Securities, fell 1.45%, while Galaxia Money Tree dropped 0.87% on the same day. Compared to their trading prices a month ago, Hanwha Investment Securities is down 7.7%, and Galaxia Money Tree has decreased by 8.5%. TSI Scientific, which holds shares in Bithumb Korea, also saw a decline of 1.16%, while its largest shareholder, WeGIT, fell by 0.36%.
Bitcoin has remained stagnant for months, particularly after the failure to advance the 'Digital Asset Market Clarity Act' in the Senate, which was anticipated ahead of the midterm elections. As of today, Bitcoin's trading price is around $83,000, with a volatility of just 0.1%. Notably, most domestic Bitcoin-related stocks are linked to cryptocurrency exchanges, and they tend to decline when trading volumes drop. Bitcoin trading volume peaked at $1.398 trillion in February but has steadily decreased to about $808.2 billion this month.
However, there are expectations for a rebound in the second half of the year. Historically, Bitcoin has shown relatively high returns in October, leading to the term 'Uptober,' a combination of October and upward trends. From 2013 to 2025, Bitcoin's price increased in 10 out of 13 Octobers, with an average return of about 19% during this period.
Despite the setback with the Clarity Act, ongoing regulatory developments by U.S. financial authorities are bolstering investor sentiment. The U.S. Securities and Exchange Commission (SEC) is refining regulations related to tokenized securities, while the Commodity Futures Trading Commission (CFTC) is expanding the scope for handling tokenized assets and derivatives within the existing regulatory framework.
In South Korea, amendments to the Electronic Securities Act and the Capital Markets Act have passed the National Assembly, paving the way for the official launch of the token securities (STO) era in February next year. This institutional entry into the blockchain industry is seen as a positive development for Bitcoin-related stocks.
A securities industry official stated, "As progress in domestic and international regulations has been delayed, Bitcoin has been stuck in a dull trading range since reaching a high of $85,000 (approximately 125.6 million won) eight months ago. However, with increasing interest in Bitcoin spot exchange-traded funds (ETFs), short covering, and new liquidity entering the market in the second half of the year, there is potential for continued upward pressure depending on the pace of regulatory developments."
* This article has been translated by AI.
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