Digital Asset reported that a Bank of Korea study found that the domestic virtual asset market reacts more sensitively to movements in the U.S. stock market than to KOSPI. A correlation showed that when the S&P 500 moved by 1%, BTC (Bitcoin) moved by approximately 0.57% and ETH (Ethereum) by approximately 0.80% during the same period. In contrast, when KOSPI moved by 1 percentage point, Bitcoin moved by only 10.14bp (0.1%p) and Ethereum by 12.52bp (0.13%p). 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 KOSPI. The paper suggested that this phenomenon may occur because the U.S. stock market and the domestic digital asset market are influenced by common factors such as global risk appetite and liquidity.
