
Bitcoin (CRYPTO:BTC) fell about 2% after U.S. markets closed as investors reacted to a sharp drop in South Korea's stock market.
South Korea's KOSPI index plunged 10%, triggering a broad sell-off across financial markets.
The decline pushed investors away from riskier assets, including cryptocurrencies and technology stocks.
Bitcoin briefly dropped below a key price level before recovering some of its losses during Asian trading.
Analysts said the move reflected broader market weakness rather than crypto-specific news.
Other major cryptocurrencies also traded lower as traders reduced risk across digital asset markets.
The latest price action highlights how global economic events can quickly affect both crypto and traditional financial markets.