KOSPI record high may signal end of BTC bull run, analysis finds

An analysis suggests that when South Korea's KOSPI index reaches a new record, Bitcoin is often near its cycle peak and poised for a decline. The KOSPI hit a new all-time high today, closing at 3,344.20, up 0.90% from the previous session. According to CoinDesk, crypto analytics firm Alphractal found that after tracking past price movements, a KOSPI peak has historically coincided with Bitcoin's cycle high. The firm noted that after the KOSPI set a record in the second half of 2021, Bitcoin hit its own new high in November of that year before entering a year-long downturn. Similar patterns were reportedly observed in late 2017, as well as in June and July 2011, when mid-cycle peaks aligned. Alphractal explained that the common factor between the KOSPI and BTC is their high sensitivity to global risk sentiment and macroeconomic conditions. When risk appetite is positive, capital tends to flow into assets like the KOSPI, which is influenced by global trade dynamics, as well as emerging markets and Bitcoin. Conversely, both the KOSPI and Bitcoin tend to fall when risk-off sentiment prevails.