South Korea Rate Hike Sparks Concern Over Crypto Market Impact

The Bank of Korea raised its benchmark interest rate for the first time since January 2023 by 25 basis points to 2.75% on July 16.

The move is expected to tighten borrowing conditions in South Korea, one of the world's most active retail crypto markets.

Local crypto trading has already fallen from earlier peaks, with won deposits at exchanges declining and daily trading volume decreasing.

Crypto holdings among South Korean investors fell by 50% over a year, from $83.3 billion in January 2025 to $41.4 billion in February 2026.