BitMine Chairman Tom Lee suggests that the recent selloff in chip and memory stocks across South Korea and Taiwan is impacting global crypto markets. Lee attributes this trend to broader de-risking efforts in the US and Asia, driven by rising bond yields, AI funding concerns, and geopolitical tensions.
South Korea's KOSPI index dropped 17% between October 1 and October 16, with a further 3.5% decline at the open on Tuesday. Major companies Samsung Electronics and SK Hynix, which accounted for 44% of the index in May, saw their shares fall by 19.74% and 28.38% respectively during the first half of October.
Forced liquidations of leveraged positions in South Korea exceeded ₩50 billion for four consecutive sessions ending October 16. Meanwhile, Korean investors net invested $1.4 billion into BitMine shares throughout 2025, highlighting the regional exposure to the company's treasury assets.
Bitcoin is currently trading at $81 385, approximately 35% below its October 6, 2025 peak of $126 080. Ethereum is priced at $2 387.07, down 52% from its August 24, 2025 high of $4 946.05. Despite these declines, Lee views the current price levels as a potential buying opportunity.
Market analysts note that the recovery of crypto assets depends on the stabilization of forced selling in Seoul and the trajectory of US borrowing costs. While Lee emphasizes resilient fundamentals, other experts argue that high interest rates remain a significant pressure point for the market.
