KOSPI Plunges 14.5% as AI Credit Stress Grows and Strategy Slows Bitcoin Buys

South Korea’s benchmark stock index fell 14.5% as AI-sector credit stress deepened, while Strategy faced a potential index exit and slowed Bitcoin buying, adding to cross-market risks for crypto investors.

The KOSPI’s drop was its steepest since October 2008. Shares of Samsung Electronics and SK Hynix declined between 17% and 24%, extending pressure beyond the index.

Credit markets also showed strain: CoreWeave’s credit-default swap spread reached 1,128 basis points, 828 basis points above Oracle’s 300 basis points. Technology-sector credit spreads continued to widen.

The U.S. Strategic Petroleum Reserve fell to 283 million barrels, 30.5% below a year earlier, as stalled Strait of Hormuz talks raised energy-supply concerns.

Strategy faces possible removal in MSCI’s November index review and has slowed its Bitcoin (BTC) purchases. Markets are focused on how long energy risk premiums persist and whether technology credit pressure spreads further. The strains span energy, corporate borrowing and equity markets.