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The crypto world always claims to be the king of volatility, but now it has to give up the throne, hahaha. The one who snatched this throne is the South Korean stock market. The numbers are scary. VKOSPI, which is the panic index of the South Korean stock market, hit a record high of 97.99 this year, the highest since statistics began in 2009. And it wasn’t set on a crash day, but on a day when the market surged over 8%, indicating that this market is afraid of both rising and falling — a double-sided panic. In contrast, the crypto market’s own volatility indicator DVOL, which last Friday experienced what’s called the most intense jump in recent years, only surged from 35 to 65 and has now fallen back to 43, not even close to the current level of the South Korean stock market. A supposedly stable traditional stock market’s volatility has outdone the wildest casino — that in itself is absurd. The reason is simple and blunt. Samsung Electronics and SK Hynix together account for more than 53% of the entire KOSPI market cap, meaning the lifeblood of the entire South Korean stock index is held by just these two memory chip stocks. At the end of May this year, the exchange also lifted restrictions on leveraged ETFs for single stocks, allowing retail investors to directly leverage and bet on these two stocks. This made an already extremely concentrated index even more amplified by leverage, and the number of circuit breakers triggered in the first half of this year set a new historical record. So my conclusion is, don’t blindly believe that traditional stock markets are naturally more stable than cryptocurrencies. When concentration and leverage stack together, even the suit-and-tie exchanges can produce crazier moves than the crypto world. Regulators are now discussing cutting leverage ratios in half, which is a temporary fix. As long as that 53% concentration remains, this drama will inevitably repeat itself. $BTC $SKHYNIX #30年期美债，顶部还是新起点？ #美日确认联合购汇