Markets are looking red in every financial sector. In a few hours, the value of more than $ 3 trillion has fallen, and the damage is not limited to one corner of the market – equities, crypto, gold and silver are all falling together. The linked decline is what has investors confused, as it points to forced sales and financial stress rather than a single negative headline.
Here’s where things stand:
- $ Bitcoin: −3.52%
- Gold: -2.24%
- Silver: −4.78%
- KOSPI: −10.68%
- Nikkei: −4.85%
- Hang Seng: -3%
- The future of the US: -1%
South Korea has faced many challenges. The losses were so large that they triggered a 20-minute trading halt on the Kospi, the fourth such halt this year, leaving the index down 10% on the day. South Korean giants SK Hynix and Samsung fell more than 12% each to drag the Kospi index down 10%, after Monday’s close at the record high.
What exactly is driving sales?
1. Taking advantage in AI, tech and semiconductors
After the difficult meeting of 2026, investors are moving away from the trades that took profits. The recent selloff marks a sharp decline in the massive AI and semiconductor sales that have dominated Asia’s performance for much of 2026. The valuation just got faster, faster, and the justification bars continued to rise.
2. Yen trading is also stabilizing
With USD/JPY hovering around 161-162, the same momentum that crushed markets in August 2024 has resumed. Investors borrow cheap yen, sell in dollars and buy high-yielding assets, including equities, bonds and other risk-free assets. When the yen rises quickly, the products become more expensive to maintain, forcing traders to sell assets to raise funds and repay yen-denominated loans.
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3. Fed fears remain high for a long time
The US data and the tone from policymakers have dampened expectations. The sector was hit by heavy profit-taking as investors sold on fears of higher US interest rates this year, with heavyweights including Alphabet and SpaceX suffering heavy losses.
4. A vicious cycle
This isn’t just a one-off deal – everything that was created is being sold. Gold, silver, bitcoin and U.S. futures will not be affected by Monday’s overall U.S.-Iran meeting, with WTI down around $73/bbl. When a safe haven like gold falls next to a risky asset, it’s a great sign that investors are raising money, not trading it for safety.
How bad is history?
This is one of the worst episodes of Korean history. KOSPI experienced the second worst session since 2008. The transmission has already passed in Europe, where chip names such as ASML, Infineon and STMicroelectronics have lost between 5% and 8%, and the US premarket pointed to an open injury.
Where does this go from here?
The biggest change is the yen. Some larger moves may cause the trade to move more and more deeply across the board crypto and equities alike. At the moment, the market is in a position-reduction phase – and as one analyst pointed out, there may still be a big sell-off waiting in the wings of traders before they allow it to return.
