Bitcoin Drops 2% as South Korea’s Kospi Crash Triggers Global Risk-Off Move

Bitcoin came under renewed pressure after the U.S. stock market closed on Monday, with a sharp decline in South Korea’s Kospi index weighing on Asian equities and creating a broader risk-off mood across crypto markets.

BTC dropped from nearly $65,000 to around $63,200, marking a decline of about 2.7%. The weakness spread across the wider cryptocurrency market, pulling down major assets including Ethereum (ETH), XRP, and Solana (SOL). The move ended the brief period of strength seen earlier Monday, when the market had remained resilient despite a sharp decline in Nvidia shares on Wall Street.

The delay surrounding the Senate’s CLARITY Act also added uncertainty. Lawmakers have shifted attention toward a Russia sanctions bill, making a vote on the long-awaited crypto market structure legislation unlikely before next week. The delay leaves the bill with only a narrow window before the Senate’s August 8 recess, despite expectations that it could improve regulatory clarity and encourage greater institutional participation in digital assets.

Asian markets faced heavy selling pressure, led by South Korea’s Kospi, which plunged 10% to its lowest level since mid-April. The index is now down 25% from its mid-June peak, with major companies such as Samsung and SK Hynix among the biggest decliners. Analysts noted that fading enthusiasm for semiconductor stocks has become a major factor behind the weakness in South Korean equities.

Bitcoin has historically moved alongside equity markets during periods of heightened volatility, although the relationship is not always direct.

Bitfinex analysts told CoinDesk that Bitcoin tends to follow stocks when market stress is driven by broader macro factors such as interest rates, but can separate from equities when the weakness is specific to individual sectors. They argued that current concerns around corporate earnings and technology spending represent a company-specific issue, meaning the strength of the BTC-equity correlation may be overstated.

Market volatility could increase further later this week as investors prepare for major economic events. The Federal Reserve is scheduled to announce its interest rate decision on Wednesday, followed by key economic data releases on Thursday.

Nexo analyst Dessislava Ianeva said the combination of the Fed decision, core PCE inflation data, and GDP figures makes the Wednesday-to-Thursday period the most important window of the week for potential shifts in U.S. rate expectations and broader market pricing.