Global market volatility has intensified again, with a sharp decline in South Korean stocks and tech stock sell-offs simultaneously impacting risk assets. The crypto market was not immune: Bitcoin briefly dropped to around $62,400, SOL fell 7% in a single day, and over $600 million in long positions were liquidated across the entire market within 24 hours.
South Korea's stock market plunge triggers a chain reaction
This round of the pullback began in the South Korean market. The KOSPI Composite Index closed down 9.99% at 8,203.84 on Tuesday, recording the second-largest single-day decline this year. Weighted stocks were hit hardest, with Samsung Electronics and SK Hynix both falling more than 12%.
Due to the high weightings of the two companies in the index, the sharp decline in chip stocks rapidly intensified market pressure. The report suggests that this volatility may also force some investors to reduce positions in other markets to meet margin calls.
U.S. stocks and precious metals are under simultaneous pressure.
Beyond the Korean market, the sell-off in tech stocks also weighed on U.S. stock performance. The report noted that the S&P 500 lost approximately $1.4 trillion in market value. Meanwhile, precious metals also declined, with gold falling below $4,000 and silver dropping below $60.
The article also noted that Federal Reserve Chair Kevin Warsh maintained the interest rate at the 3.50% to 3.75% range for the fourth consecutive time at his first FOMC meeting. Markets are also closely watching the Fed’s comments on forward guidance and whether any rate hikes are still expected this year.
Bitcoin has pulled back to around $62,400.
Amid declining risk appetite, Bitcoin fell to approximately $62,400 on Tuesday, dropping over 3% on the day and about 5% for the week. Bitcoin’s weakness also dragged down other crypto assets broadly, triggering a cascade of liquidations.
- Cryptocurrency market long positions exceeding $600 million were liquidated.
- SOL experienced a single-day decline of 7%.
- Bitcoin briefly dropped to around $62,400.
After the traditional market rebounded, cryptocurrency assets recovered more slowly.
Compared to some traditional markets, the rebound in crypto assets has been weaker. Reports indicate that the KOSPI has recovered approximately 4% from its low, and the S&P 500 and Nasdaq indices also turned positive at times over the past 24 hours, but the crypto market’s recovery has lagged behind.
The article also noted that ongoing market concerns regarding Strategy and its related securities continue to weigh on sentiment. Following the company’s announcement of another Bitcoin purchase, MSTR shares fell to $103.52 on Tuesday, their lowest level since August 2024. The report also stated that STRC is trading approximately 12% below par value, with some market participants concerned this could intensify worries about its debt and Bitcoin holdings.
The easing of tensions in the Middle East provides some support.
In the energy market, as negotiations between the U.S. and Iran progress, pressure on oil transportation through the Strait of Hormuz has eased, and oil prices have fallen back to pre-closure levels. This has alleviated supply chain tensions and reduced concerns about an energy crisis.
Next, the market will focus on Micron’s latest quarterly earnings report. Whether the semiconductor industry’s momentum and the AI trading theme can continue may further influence tech stocks and indirectly affect risk appetite in the crypto market.