Bitcoin Exhibits Unprecedented Calm Amidst Geopolitical Turmoil, Outpacing South Korea's Stock Market

Bitcoin, known for its historically high volatility, has seen a significant decline in price swings over recent years. Its 30-day realized volatility is currently at 42%, lower than South Korea's Kospi stock index, which has reached 74% and remains around 51%. This shift can be attributed to the introduction of spot ETFs in the US, leading to increased institutional investment and more stable capital flows. As a result, Bitcoin has become a more attractive option as a hedge against geopolitical uncertainty, maintaining its value even in times of war. Unlike traditional assets such as gold and the S&P 500, Bitcoin has consistently outperformed during periods of conflict. The relative stability of Bitcoin is particularly notable when compared to the volatility of the South Korean stock market, which has been heavily influenced by fluctuations in fossil fuel costs. The Kospi index experienced significant declines in late February, rebounding in recent weeks as the conflict between Iran and the US-Israeli coalition eased. Throughout this period, Bitcoin has traded steadily, supported by renewed investment in US-listed spot exchange-traded funds.