Virtual Currency-Related Stocks Start the Second Half of the Year with a Weak Performance

Hanwha Investment & Securities Declines for 3 Consecutive Trading Days
Vident and Wizit Show Similar Trends
Impact of Cryptocurrency Trapped in a Box Range

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[Asia Economy Reporter Gong Byung-sun] Cryptocurrency-related stocks, which showed a remarkable upward trend in the first half of the year, have been lackluster since the beginning of the second half.

At 9:30 a.m. on the 5th, Hanwha Investment & Securities recorded 4,665 KRW, down 1.17% from the previous day. It has been weak for three consecutive trading days since the start of the second half. Other cryptocurrency-related stocks have also failed to escape sluggishness. Woori Technology Investment is stagnating around the 7,700 KRW level and has not been able to close the gap with the highest price of 13,550 KRW recorded on April 7, while Bident and Wizit are showing similar trends.

Stocks related to cryptocurrency exchanges, which hold shares in exchanges, followed the sharp rise in cryptocurrency prices such as Bitcoin and showed significant price increases from the beginning of the year until early April. Hanwha Investment & Securities surged about 273.58%, from 2,195 KRW at the beginning of the year to 8,200 KRW on April 7. This increase was even greater than Bitcoin’s rise of 127.39% during the same period. Woori Technology Investment, Bident, and Wizit also rose by 178.23%, 96.54%, and 57.02%, respectively.

However, as Bitcoin prices declined in mid-April, cryptocurrency-related stocks also plummeted. As of the 2nd, Hanwha Investment & Securities had fallen about 42.44% from its all-time high. Other stocks also showed declines close to 50%.

The problem is that cryptocurrency-related stocks are likely to continue their sluggish performance. Bitcoin prices have been trapped in a range around 40 million KRW since the end of last month. Cryptocurrency investors do not actively buy or sell within this range, which directly affects the revenue of exchanges. As of this date, the trading volume of the four major exchanges (Upbit, Bithumb, Korbit, Coinone) is about 5 trillion KRW, which is one-ninth of the 45 trillion KRW recorded on May 7.

Interest in cryptocurrency-related stocks is also declining. On March 31, Hanwha Investment & Securities’ trading volume reached 864.6 billion KRW, but it dropped sharply to 4.2 billion KRW on the 2nd of this month. The same applies to other stocks. Woori Technology Investment decreased from 981.5 billion KRW to 9.2 billion KRW, Bident from 480.2 billion KRW to 5.7 billion KRW, and Wizit from 287.7 billion KRW to 0.8 billion KRW.

This content was produced with the assistance of AI translation services.