Is Korea’s Chip Selloff A Crypto Buying Opportunity? Tom Lee’s Case And Its Catch

What Happened

“Crypto is widely held in the US, Korea and Taiwan. So naturally, when investors in those regions de-risk, this creates spillover pressures in crypto markets,” he said.

Lee’s own company offers one gauge of that Korean exposure. Korean investors put a net $1.4 billion into BitMine shares in 2025, according to Korea Securities Depository data.

Market Context

BitMine Chairman Tom Lee says de-risking in the US, South Korea, and Taiwan is spilling into crypto markets. Ethereum (ETH), the asset BitMine holds, fell 1.91% over seven days while Bitcoin (BTC) slipped 0.177%.

Lee cites AI funding and safety worries, US-Iran war activity, midterm nerves and rising bond yields as triggers. He says those pressures hit chip and memory stocks first, then the Korean and Taiwanese markets dominated by them.

Crypto prices have moved far less than Korean stocks. At press time, Bitcoin traded at $81,385, down 1.21% in 24 hours, while ETH traded at $2,387.07, down 1.47%.

“In the past, whenever fundamentals remain resilient and strong, while price declines, these have historically been attractive risk/reward opportunities,” he noted.

Asian markets tested that claim in August 2024. On August 5, the KOSPI plunged 8.77%, and Bitcoin sank below $50,000 for the first time since February. The next day, the KOSPI rose 3.3%, while Bitcoin briefly topped $56,000 and ETH climbed above $2,500. That quick rebound fits the pattern Lee describes.

Lee’s case assumes prices are falling while fundamentals hold. Dan Greenhaus of Solus Alternative Asset Management points to higher borrowing costs instead, a pressure strong fundamentals don’t offset.

Why It Matters

Samsung Electronics and SK Hynix made up 44% of the index in May. Between October 1 and 16, they lost 19.74% and 28.38%, respectively, JoongAng Daily reported.

Taiwan held up better, with the TAIEX down 1.73% over the same October stretch. It still sank 3.41% on October 15 after September US inflation of 3.7% beat forecasts of 3.6%.

Details

Where the Chip Selloff Bit Hardest

South Korea shows the strain most clearly. The KOSPI fell 17% in October through October 16, then dropped 3.5% at Tuesday’s open.

Brokers forced out leveraged traders, with forced liquidations topping 50 billion won for four straight sessions through October 16.

Lee ties that regional selling directly to crypto.

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Can Ethereum Back Lee’s Call to Buy?

Over a longer window, ETH has fallen further. It sits about 52% below its $4,946.05 peak from August 24, 2025. Bitcoin is about 35% below its $126,080 high from October 6, 2025.

BitMine holds ETH as its treasury asset. Lee’s buy call therefore leans partly on the laggard of the two. He still sees the drop as an opening for buyers.

His case rests on crypto’s role in upgrading the plumbing of global finance. He also points to agentic AI, where software agents carry out tasks on their own.

ETH’s next move hinges on whether forced selling in Seoul slows. US rates matter too, since Lee lists rising bond yields among his own triggers. That means his buy case needs rates to ease as well as fundamentals to hold.

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