Tom Lee: South Korea's chip stock selloff offers crypto chance but rates must ease

BitMine Chairman Tom Lee believes de-risking in the US, South Korea, and Taiwan is affecting cryptocurrency markets. Ethereum (ETH), which BitMine holds, decreased 1.91% over the past seven days, while Bitcoin (BTC) fell 0.177%.

Lee blames triggers such as AI funding and safety worries, US-Iran conflict, anxiety over the midterms and higher bond yields. He argues these forces first impact chip and memory shares, then the Korean and Taiwanese markets these companies dominate.

The Chip Selloff’s Worst-Hit Markets

The impact is most evident in South Korea. The KOSPI index declined 17% from October 1 through October 16, and then fell another 3.5% when trade began on Tuesday.

Samsung Electronics and SK Hynix represented 44% of the index in May. Over October 1 to 16, they lost 19.74% and 28.38%, respectively, according to the JoongAng Daily.

Brokers liquidated leveraged traders, and forced liquidations surpassed 50 billion won for four consecutive trading sessions through October 16.

Taiwan fared better, with the TAIEX down 1.73% over the same October span. Nevertheless, it dropped 3.41% on October 15 after September US inflation of 3.7% exceeded the 3.6% forecast.

Lee directly ties this regional selling to crypto markets.

“Crypto is widely held in the US, Korea and Taiwan. So naturally, when investors in those regions de-risk, this creates spillover pressures in crypto markets,” he said.

A measure of that Korean exposure comes from Lee’s own company. Korean investors placed a net $1.4 billion in BitMine shares during 2025, based on Korea Securities Depository figures.

Does Ethereum Back Lee’s Buy Call?

Crypto values have changed far less than Korean equity prices. At the time of this report, Bitcoin traded at $81,385, a 1.21% decline in 24 hours, while ETH was at $2,387.07, down 1.47%.

Over a broader timeframe, ETH has suffered a deeper decline. It is now roughly 52% beneath its $4,946.05 peak from August 24, 2025. Bitcoin is around 35% off its $126,080 high from October 6, 2025.

BitMine keeps ETH as its treasury asset, so Lee’s purchase argument partly depends on the weaker of the two cryptos. He still regards the price decline as a buying opportunity.

“In the past, whenever fundamentals remain resilient and strong, while price declines, these have historically been attractive risk/reward opportunities,” Lee noted.

Lee’s reasoning relies on crypto’s function in updating the structure of global finance. He also highlights agentic AI, where software agents operate without human intervention.

Asian markets put that theory to the test in August 2024. On August 5, the KOSPI slipped 8.77%, and Bitcoin fell below $50,000 for the first time since February. The following day, the KOSPI advanced 3.3%, while Bitcoin briefly topped $56,000 and ETH climbed above $2,500. That rapid recovery matches the pattern Lee describes.

Lee’s scenario rests on prices declining while fundamentals remain strong. Dan Greenhaus of Solus Alternative Asset Management points out higher borrowing costs, a factor that resilient fundamentals cannot mitigate.

ETH’s future depends on whether forced selling in Seoul subsides. US interest rates are also important, as Lee includes rising bond yields among his triggers. Therefore his buy case needs rates to decline as well as fundamentals to persist.