South Korea’s crypto market fell sharply after President Donald Trump announced 25% tariffs on South Korean automakers, prompting investors to shift toward equities. Trading on the Upbit crypto exchange slumped by more than 51%, underscoring a risk-off move in the domestic digital-asset space. CoinGecko data showed broader declines on major platforms, with Upbit and Bithumb volumes down 51% and 35%, respectively.
The tariff news appeared to widen the gap between traditional equities and crypto assets, as the KOSPI rose to record highs while crypto volumes sagged. Analysts noted a widening gap between traditional stock markets and crypto markets as investors reallocated risk. The tariff news has intensified volatility and may alter near-term price action for digital assets.
Trump announced the increase on Truth Social on January 26, targeting car, pharmaceutical, and lumber tariffs. Investors remained cautious amid policy tensions, with some indicating a willingness to wait for clearer signals before deploying capital in crypto. The tariff-driven risk-off sentiment could weigh on near-term prices for major tokens.
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