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Cryptocurrency-related stocks surged across South Korea’s stock market as Bitcoin staged a recovery. Analysts attribute the move to hopes for eased U.S. crypto regulation, which revived investor sentiment, compounded by a large short squeeze that widened Bitcoin’s price gains.
According to the Korea Exchange, Woori Technology Investment (041190) was trading at 5,780 won as of 9:40 a.m., up 845 won, or 17.12%, from the previous session. The stock jumped more than 20% at one point during the session, reaching 5,960 won. Bitmax rose 16.24% to 1,890 won, while Paradaxis Ethereum gained 14.12% to 1,196 won.
Stocks tied to the Bithumb exchange also rallied. Danal (064260) was trading at 5,710 won, up 12.18%, while T-Scientific (057680) rose 8.04% to 1,586 won. Galaxia Moneytree (094480) and Bitplanet (049470) gained 6.03% and 5.94%, respectively, and Wizit (036090) was up 4.07%.
At the center of the rally was a rebound in Bitcoin prices. According to U.S. crypto exchange Coinbase, Bitcoin touched $72,812 on the 20th local time, up about 6.2% from 24 hours earlier. Compared with a week earlier, the gain exceeded 15%.
Hopes for eased U.S. regulation are cited as the main driver of the price gains. On the 19th, President Donald Trump met with cryptocurrency industry executives and pressed for swift passage of the <a href="https://xpertsstudio.com/trump-urges-senate-to-pass-clarity-act-at-white-house-crypto-summit/” title=”Trump Urges Senate To Pass CLARITY Act at White House Crypto Summit”>CLARITY Act, which would clarify the regulatory framework for the crypto market. The bill would classify sufficiently decentralized cryptocurrencies as “digital commodities,” placing them primarily under the oversight of the U.S. Commodity Futures Trading Commission (CFTC). Expectations have grown that reduced regulatory uncertainty could broaden market entry by financial firms and institutional investors.
Forced liquidations of investors who had bet on price declines also fueled the rally. According to Coinglass, short positions worth more than $3.1 billion were forcibly liquidated in the crypto market over the 24 hours through the 20th. As rising Bitcoin prices triggered the liquidation of short positions, additional buy orders flowed in, producing a short squeeze.
Woori Technology Investment (041190) is classified as a leading crypto-related stock because it holds a stake in Dunamu, the operator of Upbit, South Korea’s largest cryptocurrency exchange. As of the end of June, its stake in Dunamu stood at 7.20%. As the rebound in Bitcoin prices raised expectations for higher trading volumes and a re-rating of exchange valuations, buying has spread among companies holding exchange stakes.
#Bitcoin#CryptoStocks#WooriTechnology#CLARITYAct#ShortSqueeze#Upbit
Original reporting by Shin Ji-min for Seoul Economic Daily.
AI-translated from Korean. Quotes from foreignxact original wording
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