Samsung and SK Hynix’s slide hands Bitcoin traders an early risk gauge

South Korea’s two biggest chipmakers gave investors a wild ride this week, and crypto traders were paying close attention. Samsung Electronics and SK hynix both plunged more than 10% on Tuesday, dragging the Kospi index to its lowest level in three months. Just a day later, SK hynix reported a staggering 1,242% jump in quarterly profit.

That series attracted the interest of Bitcoin (BTC) traders, as South Korean semiconductor stocks are now seen as an early indication of sentiment in the wider market.

Heavy sell-offs in Seoul often impact US tech stocks before the Wall Street opening, and for most of the past year, BTC has been traded in step with AI stocks instead of being influenced by cryptocurrency-related news only. When the likes of Samsung and SK hynix have a bad night, many crypto firms consider this a signal of trouble ahead for risk assets.

Why crypto desks watch Seoul before New York opens

This relationship has developed to become stronger, thus it has gotten a reputation among market experts. According to Business Insider, the fast sell-off of Kospi has an influence on the stocks on the US market at the moment of opening of trades on Wall Street.

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