Kospi Sinks 10% Overnight as Bitcoin Steadies Near $63,200

Kospi's Worst Session in Years Drags Crypto Lower

Bitcoin fell about 2.7% to around $63,200 following the U.S. market close on Monday, July 27, 2026, dragged down by a sharp 10% drop in South Korea's Kospi index, which hit its lowest level since April. The slide rattled global risk assets, hitting AI and layer-1 tokens hardest, with tokens such as FET, NEAR, and HYPE losing as much as 10% over 24 hours. The Kospi's steep decline centered on concerns over heavy AI spending, financing risks, and growing competition from Chinese semiconductor companies, with Samsung and SK Hynix each posting double-digit losses.

Senate Shelves CLARITY Act Ahead of Fed Decision

The U.S. Senate postponed a vote on the CLARITY Act, prioritizing a Russia sanctions bill and leaving little floor time before the August 8 recess. A key unresolved dispute over restrictions on government officials' crypto holdings continues to stall the bill's path forward.

Bitcoin's Correlation With Equities Faces Key Test

Bitcoin traded near $63,530, down 2.2%, with key support at $63,000 heading into Wednesday's Federal Reserve decision. Bitfinex analysts noted the cryptocurrency tends to track equities most closely when macro and interest-rate stress dominate, suggesting Monday's chip-sector-driven selloff may not fully justify the correlation traders are pricing in.

The divergence between bitcoin's roughly 3% decline and Kospi's 10% plunge suggests some investors still view crypto as offering partial insulation from sector-specific equity shocks.

This week's Fed rate decision, Thursday's core PCE inflation data, and second-quarter GDP figures are likely to set the tone for both crypto and equity markets into next week. Bitfinex analysts said an earnings-and-capital-expenditure debate centered on AI spending is distinct from broad macro stress, arguing bitcoin's correlation with equities may be overstated in this instance.