South Korea's Stock Market Selloff Triggers Crypto Liquidations

The South Korean stock market triggered its eighth circuit breaker of 2026 on Monday, July 28, causing a sharp sell-off in equities and cryptocurrencies. The KOSPI dropped 8.02% to 6,213.51, driven by a plunge in U.S. semiconductor stocks.

Crypto markets were hit hard, with roughly $100 million in leveraged positions wiped out across crypto in a single hour on Monday. Bitcoin (BTC) slipped back below $64,000 as a fresh wave of liquidations hit, and its price is now trading at $63,582.

The correlation between crypto and semiconductors has been significant this year, with BTC behaving as high-beta tech exposure. The Federal Reserve's decision to hold the federal funds rate at 3.50%-3.75% for a fourth consecutive time and push out rate-cut timing projections is adding to market pressure.

The next level of resistance for Bitcoin is $65,500, which has capped every recovery attempt this week. A daily close above $71,000 is needed to signal momentum buyers are taking control.