Here’s what happened in crypto today

Today in crypto, South Korean crypto trading volumes plunged as retail investors shifted toward stocks, Balaji Srinivasan’s Network School is looking to Kazakhstan after setbacks in Malaysia and Bitcoin climbed on hopes for US crypto legislation and a rotation out of AI stocks.

South Korea crypto volumes shrink as retail investors shift to stocks

South Korea’s major crypto exchanges have seen their trading activity fall over the past year as the country’s stock market surged, suggesting retail speculative interest may be shifting toward equities, Cointelegraph analysis shows.

The Korea Composite Stock Price Index (KOSPI) benchmark more than doubled over the period, while volumes across the country’s largest won-based crypto platforms contracted.

Cointelegraph reviewed CoinGecko’s historical 24-hour volume readings for Upbit, Bithumb, Coinone, Korbit and Gopax, comparing seven-day periods in July 2025 and July 2026.

After calculating the average daily volume and year-over-year percentage change, Cointelegraph took the simple, unweighted average of the five declines, producing an average drop of about 77%. This gives each exchange equal weight regardless of trading volume. However, on a combined basis, average daily volume fell about 89%, to $305 million from $2.82 billion in the comparable July 2025 period. 

ZDNet Korea separately reported that daily volume across the five exchanges was down 88% year-on-year on Monday. It said weaker fee income had pushed some platforms to sell crypto holdings, including Korbit, which raised about 1.6 billion won (about $1 million) by selling 15 Bitcoin (BTC) and 60 Ether (ETH).

South Korea is one of crypto’s most active retail markets, with exchanges relying heavily on trading fees. A sustained preference for equities could weaken crypto liquidity and squeeze smaller platforms, reshaping how local investors allocate capital between speculative assets. 

Balaji’s Network School turns to Kazakhstan amid Malaysia setback

Balaji Srinivasan’s Network School, a community of “digital nomads,” is eyeing a new campus in Kazakhstan after its Forest City campus had its business license revoked over alleged premises-use violations. 

A memorandum of understanding was signed between Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiyev and Srinivasan to establish the first Network School campus in Kazakhstan, according to a statement from the ministry. 

The Kazakhstan agreement gives the Network School a potential new base after its Johor operation was ordered to cease operations effective Wednesday. Kazakhstan has been positioning itself as an emerging technology hub, including plans for Central Asia’s first “crypto city” in Alatau. 

“Ironically, this whole drama with Balaji literally validated the network state thesis,” said Dragonfly Capital managing partner Haseeb Qureshi. “The whole idea of a network state is taking a dense group of talent and capital, and collectively negotiating with states. The Malaysia drama set up Balaji to negotiate better terms with another state to copy and paste the network there.“

Bitcoin rally gains steam as regulation hopes and AI slowdown boost crypto

Bitcoin briefly climbed back above $67,000 on Tuesday as optimism over US crypto regulation and expectations that cooling AI stocks could drive capital rotation into cryptocurrencies fueled a broad market recovery.

Investors were encouraged after US Treasury Secretary Scott Bessent indicated Congress is close to passing the CLARITY Act, legislation that would establish clearer oversight for the crypto industry. The prospect of a more defined regulatory framework helped lift Bitcoin and Ether while sending crypto-related stocks sharply higher, with exchanges and Bitcoin mining companies among the strongest performers.

Analysts also see a broader shift taking shape in financial markets. After dominating investor attention for much of the past two years, AI-related stocks have begun to lose momentum as concerns over high valuations and heavy infrastructure spending weigh on semiconductor shares. Some market observers believe that cooling enthusiasm for AI could prompt investors to reallocate capital toward cryptocurrencies, particularly if interest rate expectations stabilize.