Bitcoin briefly touched $65,000 on CoinGecko this week as President Trump ordered airstrikes on Iran and threatened to reinstate a blockade on the Strait of Hormuz. The digital asset recovered above $63,000 within days, helped by softer-than-expected US inflation data that eased pressure on the Federal Reserve to keep rates higher. But the real action played out in South Korea, where a deepening stock market crash sent crypto trading volumes through the roof.
Upbit volume explodes as KOSPI enters bear territory
South Korea's KOSPI is now in a bear market, down more than 20% from its June record. Samsung and SK Hynix account for roughly half the index's total weight, and both have taken a beating. Trading volume on Upbit surged 1,318% in 24 hours to $4.2 billion as the stock rout deepened. XRP alone recorded more volume than Bitcoin on the exchange — a rare shift that signals retail panic rotation out of equities.
1.2 million margin calls hit leveraged accounts
Korea's Financial Supervisory Service reported that 1.2 million leveraged accounts triggered margin calls this week. That's a staggering number for a single market, and it suggests many traders were caught off guard by the speed of the KOSPI decline. The FSS didn't say how many of those accounts were crypto-related, but the overlap between Korean equity and crypto traders is well known.
SK Hynix's wild ride and the AI chip question
SK Hynix stock climbed almost 233% from the start of 2026 to a June 25 record, then retreated over 34% from that peak by July 13. The company listed American depositary receipts on Nasdaq on July 10 in a $26.5 billion offering — the largest ADR listing of the year. Investors are now weighing surging demand for AI memory chips against how much of that demand is already priced in. The stock's 34% pullback suggests the market is starting to ask that question out loud.
The Altcoin Season Index climbed to 58 this week while Bitcoin dominance slipped toward key support. That index measures whether altcoins are outperforming Bitcoin, and a reading above 50 typically signals altcoin season. Whether this one lasts depends on how the geopolitical situation evolves — and whether the KOSPI finds a floor before more margin calls cascade.
