KOSPI Plunge Sparks Crypto Market Woes Amid Chipmaking Concerns

The KOSPI index in South Korea plummeted nearly 11% on Tuesday, its worst session since April, as semiconductor stocks including Samsung Electronics and SK Hynix tumbled. The sell-off was driven by concerns over China's growing chipmaking capabilities, specifically the development of domestic deep ultraviolet (DUV) lithography equipment.

The drop in KOSPI had a ripple effect across Asia, with Japan's Nikkei 225 falling 3.9% and Taiwan's Taiex losing 4.6%. The broader crypto market also felt the pressure, with Bitcoin down 2.8% and Ether losing 3.6%

Analysts warn that if the weakness spreads to U.S. technology and semiconductor stocks, Bitcoin could face a steeper test of key support levels.