South Korea’s Kospi Hits Record High, Analyst Warns Bitcoin Bulls

South Korea's Kospi index has reached an all-time high of 4,340 points, influenced by favorable shareholder policies and global market sentiment.

Key points include:

  • An analyst warns that the rising Kospi may signal the end of the current bitcoin bull run.
  • Historically, new highs in the Kospi correlate with Bitcoin trading near its cycle peak, as observed in 2021.
  • The last concurrent peaks of both assets occurred in late 2017 and mid-2011.

Kospi and BTC price charts. (TradingView/CoinDesk)

The relationship between the Kospi and Bitcoin indicates shared sensitivity to global market conditions. Positive risk sentiment drives investment into emerging markets like the Kospi and riskier assets like Bitcoin.

Conversely, during uncertain times, both tend to decline together. This suggests that Bitcoin is increasingly linked to broader economic forces. Analyst Joao Wedson noted that the Kospi's new high could indicate a nearing conclusion of the current Bitcoin cycle.