【South Korean stocks plunge more than 6%! Tom Lee warns: Selling pressure could spread to BTC and ETH 🔥】
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South Korean stocks suddenly took a sharp dive, and the crypto market could also feel the impact.
On October 13, Bitmine chairman Tom Lee warned that the steep drop in South Korean stocks could be transmitting selling pressure to the crypto market.
That day, South Korea’s KOSPI index fell more than 6% at one point. The exchange also activated a temporary mechanism to restrict programmatic sell orders in response to the sharp volatility.
Why would a stock market downturn affect BTC and ETH?
The key lies in leveraged trading and a chain reaction involving funds.
Put simply, some investors borrow money to buy stocks. When share prices plunge and the value of their collateral falls short, brokers may issue margin calls or even force them to sell assets.
To cover the shortfall, investors may sell off other assets too, including Bitcoin and Ethereum.
Tom Lee specifically noted that South Korean investors are also major participants in the crypto market, so selling pressure in the stock market could spill over into crypto assets.
But keep in mind: this is a potential risk. It doesn’t mean that a decline in South Korean stocks will necessarily trigger a sharp BTC sell-off. There also isn’t enough data at present to show how much crypto selling has already been caused by forced liquidations in the South Korean stock market.
📌 What’s really worth watching next is whether South Korean stocks can stabilize, whether more forced liquidations occur in the crypto market, and whether BTC and ETH can remain steady as market volatility intensifies.
#TomLee
🌟 加入X先生的粉丝群聊跟进
South Korean stocks suddenly took a sharp dive, and the crypto market could also feel the impact.
On October 13, Bitmine chairman Tom Lee warned that the steep drop in South Korean stocks could be transmitting selling pressure to the crypto market.
That day, South Korea’s KOSPI index fell more than 6% at one point. The exchange also activated a temporary mechanism to restrict programmatic sell orders in response to the sharp volatility.
Why would a stock market downturn affect BTC and ETH?
The key lies in leveraged trading and a chain reaction involving funds.
Put simply, some investors borrow money to buy stocks. When share prices plunge and the value of their collateral falls short, brokers may issue margin calls or even force them to sell assets.
To cover the shortfall, investors may sell off other assets too, including Bitcoin and Ethereum.
Tom Lee specifically noted that South Korean investors are also major participants in the crypto market, so selling pressure in the stock market could spill over into crypto assets.
But keep in mind: this is a potential risk. It doesn’t mean that a decline in South Korean stocks will necessarily trigger a sharp BTC sell-off. There also isn’t enough data at present to show how much crypto selling has already been caused by forced liquidations in the South Korean stock market.
📌 What’s really worth watching next is whether South Korean stocks can stabilize, whether more forced liquidations occur in the crypto market, and whether BTC and ETH can remain steady as market volatility intensifies.
#TomLee