The domestic cryptocurrency market shrank by approximately 8 trillion won over six months as the US-China trade conflict intensified, according to financial authorities.
The Financial Supervisory Service (FSS) released the results of its "Second Half 2025 Virtual Asset Operator Survey" on Sunday. Total market capitalization of domestic cryptocurrencies stood at 87.2 trillion won ($64.5 billion) as of the end of last year, down 7.9 trillion won — or 8% — from 95.1 trillion won at the end of the first half.
Average daily trading volume also contracted from 6.4 trillion won to 5.4 trillion won over the same period. Operating profit at cryptocurrency exchanges fell from 617.8 billion won to 380.7 billion won.
Analysts attribute the decline to a wait-and-see stance among investors as the US-China trade conflict reignited in the second half of last year and military tensions between the United States and Iran have recently escalated. The crypto market had maintained an uptrend through early October, buoyed by US interest rate cuts and expectations for pro-cryptocurrency policies. However, uncertainty over US-China trade widened toward the year-end, and ongoing US-Iran military clashes this month have reinforced a broader flight from risk assets.
In terms of user demographics, investors in their 30s accounted for the largest share at 26.8%, followed by those in their 40s at 26.7%, 50s at 19.4% and 20s at 19.0%. Male users outnumbered female users across all age groups.
