Bitcoin Plunges as US Market Closes, South Korea's Kospi Index Drops 10%

Bitcoin's price has dropped by 2.7% since the US stock market closed on Monday, falling to $63,174.72 from nearly $65,000. This decline is not isolated to Bitcoin, with other cryptocurrencies like ether (ETH), XRP, solana (SOL), and others also experiencing a drop in value.

The decrease in Bitcoin's price comes amidst a broader market downturn, with South Korea's Kospi index plummeting 10% to its lowest level since mid-April. The index has now dropped 25% from its peak in mid-June, with heavyweights such as Samsung and SK Hynix experiencing steep losses.

Analysts note that Bitcoin's price tends to track equity-market volatility, but the correlation is not straightforward. Bitfinex analysts stated that 'BTC trades with equities when the stress is macro and interest rates-driven, and decouples when the stress is idiosyncratic to the equity market.'

The next two days are expected to be critical in determining market volatility, with the Federal Reserve's decision on interest rates on Wednesday followed by key economic data on Thursday.