The Korean Cryptocurrency Trading Landscape Faces Imbalance with Dominance by Top Accounts

The latest Financial Stability Report from the Bank of Korea reveals a concerning market phenomenon: although trading activity in the local cryptocurrency market remains above the global average, with Bitcoin surpassing $100,000 in 2025, underlying structural issues pose hidden risks.

**Record High Trading Concentration Marginalizes Retail Investors**

Data shows that 91.2% of trading volume in the Korean cryptocurrency market is contributed by the top 10% of accounts—meaning trading power is heavily concentrated among a few major players. This extreme imbalance in trading structure directly increases the risk of market manipulation, as institutions and whale accounts holding large trading volumes can more easily influence price movements.

Meanwhile, retail investors' behavior has quietly shifted. As Bitcoin hits new all-time highs, Korean retail investors' mindset has evolved from early aggressive accumulation to profit-taking and large cash-outs. This transition from offense to defense reflects increased sensitivity of retail investors to price volatility in their trading decisions.

**Diverging Capital Flows Test Market Resilience**

Even more noteworthy is the reallocation of hot money that was previously accumulated in the crypto market. Some funds are beginning to shift toward the Korean stock market and leveraged US ETFs, indicating investors are seeking more diversified asset allocations. If institutional and ETF access thresholds are further relaxed, Korea’s crypto market will likely become more vulnerable to global fluctuations, as the market is already controlled by a few major players and lacks sufficient retail liquidity as a buffer.

In summary, the Korean cryptocurrency trading market is facing structural challenges—excessive trading concentration, active retail exit, and capital reflow—these combined factors could serve as a fuse for future market turbulence.