Bitcoin Breaks $113,000 as KOSPI 5000 Target Fuels Investment Fever

Bitcoin has shattered the $113,000 barrier to reach new all-time highs, while Korea's stock market continues its upward momentum toward the government's KOSPI 5000 target, creating unprecedented investment enthusiasm.

Bitcoin Crowned Year's Best Performing Asset

According to Bank of America's latest research report, Bitcoin has emerged as the best-performing asset among global currencies since the beginning of 2025. The cryptocurrency broke through $113,000 at 5:41 PM Eastern Time on cryptocurrency exchanges, marking another milestone in its record-breaking rally.

CoinGlass data reveals that approximately 800 billion won ($600 million) worth of short positions were liquidated in the past 24 hours, demonstrating the massive losses suffered by investors who bet against Bitcoin's rise.

Cryptocurrency experts attribute Bitcoin's surge to "a combination of continued institutional investor inflows and the resolution of political uncertainties."

Bitcoin Recognized as Digital Gold

Global investment banks are recognizing Bitcoin as 'digital gold' and presenting positive long-term investment outlooks. Bitcoin's role as an inflation hedge has particularly gained prominence, attracting increased institutional investor interest.

NASDAQ-listed companies like K-Wave Media are raising $1 billion for Bitcoin purchases, expanding corporate Bitcoin investment strategies. This follows Michael Saylor's strategy, representing a trend toward corporate cryptocurrency asset conversion.

Korean Stock Market Sails Toward KOSPI 5000

Alongside the Bitcoin frenzy, Korea's stock market is experiencing a transformative moment. The Lee Jae-myung government's 'KOSPI 5000' target is being interpreted as substantive market reform commitment beyond mere political rhetoric.

The government demonstrates its resolve to address structural problems in Korean markets through commercial law amendments and shareholder-friendly policies. Particular emphasis is placed on strengthening shareholder return policies and improving corporate governance to eliminate the Korea Discount.

Securities industry officials analyze that "following the honeymoon rally driven by political uncertainty resolution and shareholder-friendly policy expectations, the government's energy and infrastructure investment expansion and commercial law amendment promotion continue to provide sustained upward momentum for the stock market."

Global Capital Inflows and Improved Investment Sentiment

The Korean stock market's upward trend is closely related to global capital inflows. Foreign investor interest is particularly increasing in AI-related companies and semiconductor sectors.

Alongside improved earnings expectations for large-cap stocks led by Samsung Electronics, investors seeking new growth drivers in small and mid-cap stocks are also increasing. This is leading to overall market valuation reassessment.

Correlation Between Cryptocurrency and Stock Investment

Interestingly, the correlation between Bitcoin and Korean stock markets is intensifying. Global liquidity expansion and risk asset preference sentiment are positively affecting both markets.

Young investors particularly employ portfolio diversification strategies involving simultaneous cryptocurrency and stock investments. They are actively seeking new investment opportunities beyond traditional asset classes.

Risk Factors and Precautions

However, experts advise caution against excessive optimism. Bitcoin maintains high volatility with persistent regulatory risks. Korean markets also cannot exclude correction possibilities based on external economic environment changes and corporate performance.

Investment experts emphasize that "sustained upward trends require fundamental improvement support" and "long-term perspectives are more important than short-term speculation."

Second Half 2025 Outlook

Market participants believe both Bitcoin and Korean markets have upward potential in the second half of 2025. However, the prevailing opinion emphasizes the need to monitor external variables such as global monetary policy changes and geopolitical risks.

Particularly, the US Federal Reserve's monetary policy and China's economic conditions are expected to be important influence factors for both markets. Investors must carefully respond to these macroeconomic environment changes.

Original Korean article: https://trendy.storydot.kr/economy/bitcoin-113k-kospi-5000-investment-boom