Bitcoin Bulls Urged to Exercise Caution as Kospi Hits Record Highs
South Korea’s Kospi index has surged to a new all-time high of 4,340 points, fueled by expectations of shareholder-friendly policies and supportive global market sentiment.
Crypto analytics firm Alphractal flagged the milestone as a potential warning for Bitcoin (BTC) bulls. Historically, Bitcoin has often neared its cycle highs when the Kospi reached record levels.
“Whenever the Kospi sets a new all-time high, Bitcoin tends to be trading near its peak for the cycle. The last instance was in 2021,” Alphractal said on X.
In 2021, the Kospi’s peak coincided with Bitcoin reaching around $70,000 before entering a prolonged bear market. Similar patterns were observed in late 2017 and during mid-2011 interim peaks, highlighting a recurring connection between the two markets.
Implications for Traders
While the correlation is not absolute, it signals a sensitivity of Bitcoin to global risk-on/risk-off flows and investor sentiment. Positive risk appetite typically drives capital into emerging market equities and high-risk assets like Bitcoin, while risk-off periods see both retreat.
“Now that the Kospi has reached a new record, it serves as an incremental signal that Bitcoin’s current bull cycle may be nearing its end. Capital continually flows across major economies, risk assets, and speculative instruments, often independent of fundamentals,” said Joao Wedson, founder and CEO of Alphractal.
With Bitcoin trading near $114,000, market participants are advised to watch global equities closely, as Kospi’s record highs may influence BTC’s momentum.
