Is Korea’s Chip Selloff a Crypto Buying Opportunity? Tom Lee’s Case and Its Catch
BitMine Chairman Tom Lee says de-risking within the US, South Korea, and Taiwan is spilling into crypto markets. Ethereum (ETH), the asset BitMine holds, fell 1.91% over seven days whereas Bitcoin (BTC) slipped 0.177%.
Lee cites AI funding and security worries, US-Iran warfare exercise, midterm nerves and rising bond yields as triggers. He says these pressures hit chip and reminiscence shares first, then the Korean and Taiwanese markets dominated by them.
Where the Chip Selloff Bit Hardest
South Korea exhibits the pressure most clearly. The KOSPI fell 17% in October by way of October 16, then dropped 3.5% at Tuesday’s open.
Samsung Electronics and SK Hynix made up 44% of the index in May. Between October 1 and 16, they misplaced 19.74% and 28.38%, respectively, JoongAng Daily reported.
Brokers pressured out leveraged merchants, with pressured liquidations topping 50 billion gained for 4 straight periods by way of October 16.
Taiwan held up higher, with the TAIEX down 1.73% over the identical October stretch. It nonetheless sank 3.41% on October 15 after September US inflation of 3.7% beat forecasts of three.6%.
Lee ties that regional promoting on to crypto.
“Crypto is extensively held within the US, Korea and Taiwan. So naturally, when traders in these areas de-risk, this creates spillover pressures in crypto markets,” he said.
Lee’s personal firm gives one gauge of that Korean publicity. Korean traders put a net $1.4 billion into BitMine shares in 2025, in keeping with Korea Securities Depository information.
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Can Ethereum Back Lee’s Call to Buy?
Crypto costs have moved far lower than Korean shares. At press time, Bitcoin traded at $81,385, down 1.21% in 24 hours, whereas ETH traded at $2,387.07, down 1.47%.
Over a longer window, ETH has fallen additional. It sits about 52% beneath its $4,946.05 peak from August 24, 2025. Bitcoin is about 35% beneath its $126,080 high from October 6, 2025.
BitMine holds ETH as its treasury asset. Lee’s purchase name subsequently leans partly on the laggard of the 2. He nonetheless sees the drop as a gap for patrons.
“In the previous, at any time when fundamentals stay resilient and sturdy, whereas value declines, these have traditionally been enticing threat/reward alternatives,” he famous.
His case rests on crypto’s function in upgrading the plumbing of world finance. He additionally factors to agentic AI, the place software program brokers perform duties on their very own.
Asian markets examined that declare in August 2024. On August 5, the KOSPI plunged 8.77%, and Bitcoin sank beneath $50,000 for the primary time since February. The subsequent day, the KOSPI rose 3.3%, whereas Bitcoin briefly topped $56,000 and ETH climbed above $2,500. That fast rebound suits the sample Lee describes.
Lee’s case assumes costs are falling whereas fundamentals maintain. Dan Greenhaus of Solus Alternative Asset Management points to greater borrowing prices as an alternative, a stress sturdy fundamentals don’t offset.
ETH’s subsequent transfer hinges on whether or not pressured promoting in Seoul slows. US rates matter too, since Lee lists rising bond yields amongst his personal triggers. That means his purchase case wants charges to ease in addition to fundamentals to carry.
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