Analysts fear KOSPI plunge could trigger wider crypto sell-off

Concerns are rising that the shock from a sharp plunge in South Korea's KOSPI index could spread risk-off sentiment to U.S. stocks and cryptocurrencies. Crypto analyst Hupzy warned that the crash in the South Korean stock market could push Bitcoin below key support levels. He highlighted the KOSPI's intraday drop of over 8%, which triggered a circuit breaker, and SK Hynix's 38% fall in under three weeks as evidence of how quickly the AI and semiconductor boom is fading. Hupzy argued this trend could directly impact the crypto and AI sectors, with expanding panic-selling in equities likely to exert downward pressure across the cryptocurrency market. He suggested the KOSPI's collapse could break existing correlations and drag BTC below its support, adding that the crypto sell-off is expected to intensify if U.S. markets follow Asia's downturn. Similarly, crypto influencer Ash Crypto noted that spreading panic in the stock market is putting downward pressure on risk assets, including cryptocurrencies.