Key takeaways
- Tom Lee warns Korean liquidations could pressure Ethereum
- South Korea's KOSPI plunged more than 6% Tuesday
- Ethereum ETFs lost $85.4 million despite BitMine accumulation
Ethereum traded near $2,530 on October 13 as Fundstrat co-founder Tom Lee warned that a sharp sell-off in South Korean equities could spread into cryptocurrency markets, creating additional selling pressure on ETH.
South Korea's KOSPI plunged more than 6% intraday, triggering emergency trading controls as technology stocks suffered heavy losses. Lee warned that margin calls at Korean brokerages could force investors to sell other assets, including cryptocurrencies, to raise cash.
The warning is particularly notable because Lee chairs BitMine, the Ethereum treasury company that now controls approximately 4.9% of ETH's circulating supply.
Ethereum Price Faces Pressure as Korean Stocks Crash
Tuesday's Korean stock-market decline was driven partly by weakness in semiconductor companies, including Samsung Electronics and SK Hynix.
Lee identified two potential transmission channels into crypto: forced selling by leveraged stock investors and South Korea's substantial cryptocurrency participation. However, those risks do not establish that Korean investors have already liquidated significant ETH holdings.
Ethereum was trading around $2,520-$2,530, down more than 6% over seven days, according to market data cited in Tuesday's reports.
Meanwhile, U.S. spot Ethereum ETFs extended their outflow streak. Farside Investors recorded $85.4 million in net withdrawals on October 12, including $75.1 million from BlackRock's ETHA.
The latest withdrawals follow approximately $542 million leaving Ethereum funds last week, adding pressure to an already fragile market.
BitMine Owns 4.9% of ETH but Buying Could Slow
Despite his short-term warning, Lee remains optimistic about Ethereum's longer-term prospects.
BitMine's October 12 announcement confirmed holdings of 6,028,946 ETH after purchasing another 12,532 tokens.
The company now holds roughly 4.9% of Ethereum's estimated 122.1 million supply, approaching its stated 5% accumulation target.
BitMine also reported 5.07 million ETH staked, with estimated annualized staking revenue of $336 million at its recently reported yield.
However, reaching the 5% target could reduce one source of consistent institutional buying if the company slows accumulation afterward.
Coinpaper previously reported BitMine's accumulation and Ethereum's staking withdrawal queues, both relevant to supply conditions.
