Tom Lee, co-founder of Fundstrat and chairman of BitMine Immersion Technologies, has cautioned that a sharp decline in South Korean equities could generate additional selling pressure on cryptocurrencies, particularly Ethereum, in the near term. Lee pointed to the potential for brokerage margin liquidations and the substantial holdings of digital assets by South Korean investors as channels through which equity market stress might transfer to crypto.

KOSPI Tumbles on Semiconductor Losses

South Korea’s benchmark KOSPI index fell more than 6 percent during the session on October 13, 2026, with losses concentrated in technology and semiconductor shares. The index opened lower and extended declines, at one point trading below the 6,000 level. Samsung Electronics and SK Hynix led the downturn, with shares dropping approximately 7 percent and between 8 and 10 percent respectively.

The sell-off followed concerns that Chinese memory chip maker ChangXin Memory Technologies had advanced its technology and planned to introduce next-generation server DRAM products. These developments raised questions about competitive pressure on South Korean chipmakers and potential effects on pricing and margins in the memory sector. Broader technology markets also showed weakness, with the Philadelphia Semiconductor Index declining around 2.7 percent in the preceding session.

Foreign investors sold a net amount of shares valued in the range of several billion U.S. dollars during the session. Retail and institutional investors provided some offsetting buying, yet the overall direction remained negative. The KOSDAQ index also recorded declines exceeding 4 percent at points during trading.

Emergency Market Controls Activated

As KOSPI 200 futures fell more than 5 percent early in the session, the Korea Exchange activated a sell-side sidecar mechanism at approximately 9:48 a.m. local time. The measure temporarily suspends certain program sell orders for five minutes when futures move sharply. The control was used for the first time in roughly two months. Despite the intervention, the broader equity decline continued through the day.

Potential Spillover Into Cryptocurrency Markets

Lee stated that the equity market drop was likely spilling over into crypto. He identified two primary factors: margin liquidations occurring at Korean brokerages and the fact that South Korean investors represent major holders of digital assets. In leveraged trading, brokers can force the sale of positions when collateral falls below required levels. Investors facing such demands may sell other holdings, including cryptocurrencies, to raise cash.

Lee described the outlook for Ethereum as involving short-term pain. He did not provide estimates of potential liquidation volumes or identify specific transactions linking Korean equity losses to crypto sales. The comments were framed as a risk of financial contagion rather than confirmation that such selling had already taken place on a measurable scale.

Ethereum traded near 2,530 U.S. dollars around the time of the equity session, after declining roughly 6 percent over the prior seven days. Daily trading volume stood near 16 billion U.S. dollars, with market capitalization around 309 billion U.S. dollars. Technical levels under review included support in the 2,400 to 2,450 range and resistance near 2,600.

BitMine Continues Ethereum Accumulation

In a separate development, BitMine Immersion Technologies reported purchasing an additional 12,532 ETH during the week ending October 11. The company’s total holdings reached approximately 6,028,946 ETH, representing roughly 4.9 percent of the network’s stated supply of about 122.1 million tokens. Based on a reference price near 2,544 U.S. dollars per ETH, the holdings were valued at around 15.3 billion U.S. dollars.

Management indicated the firm was largely finished with its buying program as it approached a target of holding 5 percent of supply. A substantial portion of the holdings remained staked. The accumulation activity provided a counterpoint to the short-term selling concerns raised by Lee, who also serves as BitMine’s chairman.

South Korean authorities have previously monitored elevated levels of margin lending in equity markets. Figures from earlier in 2026 showed significant outstanding margin loan balances, though those data do not directly measure forced selling during the October 13 session. Market participants continue to watch for any measurable transfer of pressure from Korean equities into digital asset trading.