Bitcoin clears $64,000 as Kospi crash fuels AI-rotation bets
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- Bitcoin cleared $64,000 in Asia hours ahead of the Fed's decision, buoyed by a thesis connecting the move to capital fleeing AI equities
- South Korea's Kospi dropped 6% on Wednesday, deepening a bear market that began after the index hit a peak of 9,385 points on June 19
- Since its June 19 peak, the Kospi has crashed by nearly 40%, led by heavy slumps in Samsung Electronics and AI-linked chip maker SK Hynix
- AI-related stocks have fallen out of investor favor worldwide as investors question valuations, according to the source
- 10x Research wrote on X that "as the AI trade gets repriced, bitcoin may capture some of the value," directly linking the Kospi's drop to bitcoin's potential upside
- 10x Research argued Anthropic and OpenAI are "due for a serious repricing" driven by commoditization rather than demand weakness
Why it matters: The Kospi's near-40% crash since June — concentrated in Samsung Electronics and SK Hynix — provides a concrete, measurable case study for the AI-trade unwind now spreading to private LLM valuations. If 10x Research's rotation thesis holds, the same capital exiting AI equities could flow into bitcoin as one of 2024-25's most crowded trades unwinds.
