South Korean Crypto Traders Surge 70% in 3 Years Amid Market Correction

VADODARA, January 28, 2026 — South Korea's cryptocurrency trader population expanded by 70.3% over three years despite a 2025 trading volume correction. According to data from the Financial Supervisory Service, participation on five major exchanges grew from 5.82 million in 2023 to 9.91 million in 2025. This latest crypto news reveals structural growth persisting through market volatility.

Investigation: Regulatory Data Reveals Steady Adoption Curve

Asia Business Daily reported the findings on January 28. The Financial Supervisory Service submitted the data to lawmaker Lee Heon-seung of the People Power Party. The report covers Upbit, Bithumb, Coinone, Streami, and Korbit.

Participation grew steadily year-over-year. It reached 8.91 million in 2024 before hitting 9.91 million last year. Trading volume tells a different story. Combined volume surged from 1,122.22 trillion won in 2023 to 2,411.32 trillion won in 2024.

Volume then corrected to 2,139.89 trillion won in 2025. This represents an 11.3% decline from the 2024 peak. Market structure suggests retail accumulation during price weakness.

Market Context & Historical Precedent

Historically, South Korean markets exhibit high retail leverage. The 2021 bull run saw similar participation spikes. In contrast, the current growth occurs during a global fear sentiment phase.

Similar to the 2021 correction, volume contraction often precedes renewed institutional interest. Underlying this trend, South Korea's crypto penetration now approaches 20% of the adult population. This mirrors Japan's adoption trajectory from 2018-2020.

Related developments include regulatory shifts elsewhere. For instance, South Dakota's recent Bitcoin bill reflects growing U.S. state-level engagement. Meanwhile, on-chain finance hitting $120B demonstrates parallel institutional growth.

Technical Architecture & Price Action

Market structure suggests a liquidity grab below key psychological levels. Bitcoin currently tests the $89,023 region. The Fibonacci 0.618 retracement from the 2024 high sits at $82,000.

This level represents critical support. A break below would invalidate the current accumulation thesis. On-chain data indicates increased UTXO creation in Asian trading hours.

Volume profile analysis shows most trading occurs between $85,000 and $92,000. This creates a Fair Value Gap that must be filled. The 200-day moving average provides dynamic support at $86,500.

By The Numbers

Why It Matters

South Korea represents Asia's third-largest crypto economy. Its retail base provides critical liquidity during institutional outflow periods. The 70% growth indicates structural adoption, not speculative frenzy.

Market analysts note the volume correction coincides with global monetary tightening. The Federal Reserve's current rate policy creates headwinds. Despite this, user growth continues.

This suggests long-term portfolio allocation. Retail investors appear to be dollar-cost averaging. Similar patterns preceded the 2023 market recovery.

Expert Commentary

"The divergence between user growth and volume contraction signals accumulation. Retail participants are building positions during fear sentiment. This creates a structural support floor for Asian markets." - CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two technical scenarios emerge from current market structure.

• Bullish Invalidation Level: $98,000. A break above this resistance confirms trend reversal and targets $105,000.
• Bearish Invalidation Level: $82,000. Loss of Fibonacci support opens retest of $78,000 liquidity pool.

The 12-month outlook depends on macro liquidity conditions. Institutional capital typically follows retail adoption by 6-9 months. South Korea's growth suggests Asian institutional flows may accelerate in Q3 2026. This aligns with historical cycles where retail expansion precedes institutional re-entry.