Bitcoin Retreats 2% Amid Asian Market Turmoil and South Korea’s Sharp Equity Drop

Bitcoin came under pressure after Monday’s U.S. trading session ended, as a steep decline in South Korea’s Kospi index pushed Asian markets lower and sparked a broader risk-off sentiment across crypto markets.

BTC dropped from levels near $65,000 to approximately $63,200, marking a decline of about 2.7%. The weakness spread across the digital asset market, pulling major cryptocurrencies such as Ethereum (ETH), XRP, and Solana (SOL) lower. The move erased the earlier resilience shown by crypto markets, which had held up despite a sharp fall in Nvidia shares on Wall Street.

The delayed progress of the Senate’s CLARITY Act also added to market uncertainty. Lawmakers have shifted their focus toward a Russia sanctions package, making it unlikely that the long-awaited crypto market structure bill will be voted on before next week. The delay leaves a narrow timeframe before the Senate’s August 8 recess, despite expectations that the legislation could bring greater regulatory clarity and support increased institutional involvement in digital assets.

Asian stocks faced significant selling pressure, led by South Korea’s Kospi, which plunged 10% to its lowest point since mid-April. The index is now down 25% from its mid-June high, with major semiconductor companies including Samsung and SK Hynix among the hardest hit. Market analysts attributed the decline partly to fading investor enthusiasm toward chipmakers, which had previously fueled much of South Korea’s equity rally.

While Bitcoin has historically moved alongside stocks during periods of market stress, the relationship between crypto and equities is more complex than a direct correlation.

Bitfinex analysts noted that Bitcoin generally follows equity markets when volatility is driven by macroeconomic factors such as interest rate concerns. However, BTC can move independently when market weakness comes from sector-specific issues. They argued that current concerns around technology earnings and corporate investment are primarily affecting equities, meaning the strength of the Bitcoin-stock relationship may be overstated.

Attention is now turning to several major economic events that could shape market direction in the coming days. The Federal Reserve is scheduled to announce its interest rate decision on Wednesday, while key economic data releases are expected on Thursday.

According to Nexo analyst Dessislava Ianeva, the Fed decision, core PCE inflation figures, and GDP data will make the Wednesday-to-Thursday period a critical window for changes in interest rate expectations and volatility across global markets.