Bitcoin slides 2% after U.S. close while Korea’s Kospi plunges 10%

Bitcoin's price fell approximately 2.7%, dropping to around $63,200 after the U.S. stock market closed on Monday. This decline followed a broader selloff in major cryptocurrencies such as ether (ETH), XRP, and Solana (SOL). The decrease coincided with a sharp downturn in Asian equities, led by South Korea’s Kospi index, which plunged 10%—its lowest since mid-April—and is now down 25% from its mid-June peak. The losses in the Kospi were driven largely by steep declines in major tech companies like Samsung and SK Hynix, which has historically been a significant factor for South Korea’s market.

The U.S. Senate delayed a vote on the CLARITY Act, a regulatory bill championed as providing clearer rules for digital assets and potentially unlocking substantial institutional investment. The delay came as legislators prioritized passing a Russia sanctions bill, making it unlikely that crypto regulatory legislation will be considered before the August 8 congressional recess.

Analysts noted that bitcoin often moves with stocks when volatility is driven by macroeconomic stress and interest-rate concerns. However, the correlation between bitcoin and equities can be complex. According to Bitfinex analysts cited by CoinDesk, bitcoin tends to track equities during broad macroeconomic and rate-driven stress but can decouple when the market stress is isolated to equity-specific issues, such as corporate earnings or capital expenditure debates.

Looking ahead, the Federal Reserve's interest rate decision scheduled for Wednesday and the release of key economic data on Thursday are expected to introduce significant volatility across asset classes, including cryptocurrencies. Market participants will likely be closely watching these events for cues on future monetary policy and economic conditions.