BTC Bulls on Alert: Kospi Reaching New Peaks May Curb Bitcoin’s Momentum, Says Analyst

Bitcoin Bulls Cautioned as South Korea’s Kospi Hits Record Highs

South Korea’s benchmark Kospi index surged to a record 4,340 points, driven by expectations of shareholder-friendly policies and positive global market sentiment.

Crypto analytics platform Alphractal flagged this milestone as a potential warning for Bitcoin (BTC) bulls, noting historical patterns where surges in the Kospi often coincided with Bitcoin nearing the peak of its bull cycle.

“Every time the Kospi has set a new record high, Bitcoin was trading near its all-time cycle high. The last time this happened was in 2021,” Alphractal said on X.

Historical data shows the Kospi’s 2021 peak coincided with Bitcoin approaching $70,000 before entering a prolonged bear market. Similar correlations appeared in late 2017 and during interim peaks in mid-2011, highlighting a recurring connection between the two markets.

Macro Signal for Bitcoin

While the correlation is not definitive, it offers an incremental signal for traders. Both Bitcoin and the Kospi respond strongly to global risk-on/risk-off flows and shifts in investor sentiment. Periods of positive risk appetite tend to drive capital into emerging market equities and high-risk assets like Bitcoin, whereas risk-off environments see both decline.

“Now that the Kospi has reached a new all-time high, it serves as another signal that Bitcoin’s cycle may be approaching its peak. Capital flows seamlessly between major economies, risk assets, and even speculative instruments like memecoins, often independent of fundamentals,” said Joao Wedson, founder and CEO of Alphractal.

With Bitcoin trading near $114,000, investors are advised to monitor global equities for cues, as the Kospi’s record highs may influence the trajectory of BTC’s bull run.