Woofun AI reports that the Bank of Korea issued a cautionary note in its "Financial Stability Report for the First Half of 2026" highlighting the growing interdependence between digital assets and conventional finance. The central bank’s analysis indicates that as the cryptocurrency market’s correlation with traditional equities and foreign exchange strengthens, the potential for volatility spillovers is escalating.

This shift is attributed to an increasingly diversified investor base and evolving market structures, which amplify the probability of risk transmission from crypto to the broader financial system.