AI frenzy losing steam leaves bitcoin less volatile than South Korean stocks

Crypto Daybook AmericasAI frenzy losing steam leaves bitcoin less volatile than South Korean stocksYour day-ahead look for July 17, 2026By Omkar Godbole|Edited by Sheldon Reback Jul 17, 2026, 11:48 a.m. 3 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowThis is an excerpt from CoinDesk newsletter 'Daybook.' Sign up here, if you haven't already.While geopolitical tensions are pressuring bitcoin BTC$63,269.14 and the broader crypto market, a compelling data point has surfaced, highlighting the side effects of this year's AI frenzy.South Korea's Kospi index, a primary beneficiary of the AI boom, has slumped nearly 25% in just four weeks. Options markets show the index is now viewed as at least twice as risky as bitcoin, a decentralized cryptocurrency frequently criticized for its extreme volatility.Kospi’s options-based 30-day implied volatility (IV) index has surged to an annualized 81%, more than double BVIV, the bitcoin equivalent, at around 38%, data from Bloomberg and Volmex show. Implied volatility is determined by demand for options, or hedging contracts; greater demand indicates a greater perceived need for protection from price swings.Many Korean retail traders chasing high returns through margin trading and leveraged ETFs have faced forced liquidations, now totaling more than $2 trillion in less than three months. The fact that a major economy’s stock index is exhibiting more volatility than bitcoin may serve as a warning to other global markets where the AI frenzy has fueled unprecedented risk-taking.For bitcoin supporters, the reality that BTC is steadier than the Kospi is a notable victory. Still, the largest cryptocurrency remains twice as volatile and risky as the S&P 500 index, whose 30-day volatility index (VIX) sits below 20%. Perhaps the true milestone for bitcoin bulls will be the day when the VIX becomes more expensive than the BVIV.In the meantime, bitcoin’s price remai…

AI frenzy losing steam leaves bitcoin less volatile than South Korean stocks

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