Bitcoin rebounds above $83,000 as South Korea's AI stock crash triggers $813 million in crypto liquidations
Bitcoin bounces back amid a $800 million wipeout
Bitcoin climbed back above $83,000 on Tuesday after briefly falling below $81,000, recovering despite a major selloff in South Korean stocks and more than $800 million in cryptocurrency liquidations. The broader crypto market saw $812.9 million in forced closures of leveraged trades over 24 hours, according to CoinGlass data.
South Korea's market takes a hard hit
South Korea's benchmark KOSPI index dropped as much as 7.4% before settling at 6,035.35. The sell-off was driven largely by sharp losses in the country's largest semiconductor makers. Samsung Electronics fell 7.39%, while SK Hynix declined 10.09% — marking five straight days of losses for both companies. Together, these two firms make up roughly half of the KOSPI's total market value.
Foreign investors pulled about 4.5 trillion won ($3.35 billion) from Korean equities during the session, according to CryptoSlate reports citing Paradis Labs. The research firm described the trend as part of a broader institutional shift summarized as “Sell Korea, Buy US.”
The selling intensified after Broadcom CEO Hock Tan compared speculative AI investment to gambling, raising worries that massive spending on AI infrastructure may not generate strong enough returns. Meanwhile, China’s ChangXin Memory Technologies announced it developed a DRAM design that could shrink memory-cell area by about 30%, with plans to introduce products by late 2026. That development added to concerns about competition for South Korean chipmakers, though ChangXin’s ability to mass-produce the technology commercially has not yet been proven.
The weakness spread beyond Korea. The Philadelphia Semiconductor Index fell 2.7% on Monday, and Japan’s Nikkei 225 dropped 1.8% on Tuesday. BlackRock also downgraded its view of US equities from overweight to neutral, citing growing concerns about AI-related volatility and higher borrowing costs.
What the liquidation numbers show
The $812.9 million in crypto liquidations was heavily weighted toward traders who had bet on prices rising. Of the total, $686.72 million — about 84.5% — came from bullish (long) positions being forcibly closed. Bearish (short) positions accounted for the remaining $126.19 million. The data affected 170,209 traders over the 24-hour period.
Despite the rebound, some analysts pointed to negative Net Taker Volume — a measure of aggressive selling pressure on derivatives markets — as a sign that sellers may still hold the upper hand in the short term.
Why this matters for crypto investors
The episode highlights how closely crypto markets can move alongside traditional financial stress, particularly when a concentrated blow to major Asian equities ripples through global risk sentiment. Bitcoin’s ability to recover above $83,000 after a steep derivative shakeout suggests buyers stepped in, but the heavy liquidation of bullish positions and continued selling pressure leave questions about how durable the bounce will be.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.