Stock Markets Mirror Crypto as Narratives Trump Valuations

In recent months, global stock markets have seen massive rallies and crashes, reminiscent of the crypto market. The Korea Composite Stock Price Index (KOSPI) plummeted 8.95% in a single day, triggering its 7th circuit breaker of the year. SK Hynix, considered a 'national stock' by South Koreans, dropped 15.37% in one day, a decline not seen in nearly two decades.

Over 1.2 million leveraged accounts received margin calls, with brokerage systems automatically liquidating between 320,000 and 460,000 accounts. A staggering 62% of those who were liquidated were young people aged 20 to 30. Some lost their wedding fund down payments, others had taken out loans to trade stocks.

A man in his 20s from Busan, after suffering losses from following a stock YouTuber's recommendations, directly stabbed the blogger with a knife. This scene is eerily reminiscent of the aftermath of a major crypto crash.

The tech stock tide has receded, but what's truly changing is the pricing mechanism: narratives overpower valuations, leverage amplifies emotions, and social media rapidly pushes consensus to extremes. Global stock markets, especially tech stocks, are becoming increasingly like the crypto market.