Why 2026 could mark crypto’s next expansion phase in Korea

Prices of cryptocurrencies are displayed on a screen at Upbit, Korea's largest crypto-exchange, March 4. Yonhap

Prices of cryptocurrencies are displayed on a screen at Upbit, Korea’s largest crypto-exchange, March 4. Yonhap

Cryptocurrency entered 2025 with a euphoric rally. Clearer regulatory signals from major economies and a more accommodative policy backdrop helped propel Bitcoin to a record $126,000. Institutional capital flowed steadily into the market, with some companies adding digital assets to their balance sheets under strategic allocations.

Sentiment reversed sharply toward year-end. Concerns over U.S. trade policy sparked capital outflows, while expected Federal Reserve rate cuts were slower to materialize than markets had anticipated. The selloff intensified after October, when a renewed U.S. tariff pledge on China triggered about $19…

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