[DigitalToday reporter Jinju Hong (홍진주)] A steep fall in Samsung Electronics and SK Hynix is emerging as a new early risk signal for the bitcoin market. Bitcoin has recently shown a high correlation with artificial intelligence-related tech stocks rather than crypto-specific issues. Analysts say a sharp drop in major South Korean chip stocks could shake global risk-asset investment sentiment.

On July 29 (local time), blockchain media outlet Cryptopolitan reported that bitcoin investors are watching the selloff as a signal of worsening sentiment across risk assets. The report said the KOSPI slid to a three-month low as Samsung Electronics and SK Hynix shares fell sharply.

The latest move began on July 28 in Seoul markets. Samsung Electronics and SK Hynix each fell more than 10 percent, leading the KOSPI lower. After that, SK Hynix shares listed in the United States fell about 9 percent, and the Nasdaq 100 index dropped nearly 2 percent as selling spread across global tech stocks.

Markets are focusing on signs that bitcoin has been moving more closely with AI-related stocks than with crypto-specific drivers. Samsung Electronics and SK Hynix are key companies in the memory chip supply chain, including high-bandwidth memory (HBM) that is essential for building AI data centres. Analysts say weakening sentiment toward the companies can be taken as a signal that expectations for AI investment have softened, potentially leading to reduced exposure to risk assets more broadly.

The share-price declines that continued even after earnings releases added to market concerns. SK Hynix reported record results, with second-quarter net profit up 1,242 percent from a year earlier to 9.4 trillion won. Operating profit rose 557 percent to 6.0 trillion won, and revenue came to 7.9 trillion won. A one-off gain from selling its stake in flash memory maker Kioxia also affected the results.

The issue is that the stock did not respond even with those figures. SK Hynix shares were already down 14 percent before the earnings announcement, and over the past month Samsung Electronics and SK Hynix shares have fallen about 33 percent and 41 percent, respectively.

Samsung Electronics is set to release second-quarter results on July 31. Markets expect operating profit to rise about 1,800 percent from a year earlier, but if the share price remains weak even as results improve, it could be interpreted as a sign investors are more worried about future growth and a slowdown in AI investment than current performance.

Markets see growing doubts about the sustainability of AI investment rather than memory demand itself. The burden of raising massive funds needed to build new AI data centres is increasing, and competition from Chinese chipmakers is also cited as a headwind. In China, localisation of deep ultraviolet (DUV) lithography equipment is gaining pace, and memory maker CXMT has been rapidly expanding competitiveness, including a 466 percent rise in revenue after listing on the Shanghai stock market.

Nvidia’s planned $250 billion Ohio AI data centre project has also revived debate about overheating investment. Joshua Meyers, a managing director at JPMorgan, said, "None of these seems to be fundamentally explained," and assessed that the market is reacting more sensitively to shifts in investment sentiment than to corporate fundamentals.

If such risk-off sentiment broadens, bitcoin is also likely to be affected. Recently, shares of companies holding large amounts of bitcoin have also swung, showing a further strengthening of the linkage between bitcoin and tech stocks.

Not all market views are negative. KB Securities analyst Dongwon Kim (김동원) forecast memory chip prices would rise at least 30 percent in the third quarter, reflecting the possibility that a memory supply shortage could persist through 2028. SK Group also said it is pursuing a joint project worth $500 billion with Nvidia, keeping expectations alive for expanded AI investment.

Markets see major companies’ earnings due this week as a key variable shaping investment sentiment. After Samsung Electronics, Microsoft, Meta Platforms and Amazon are set to release results in succession. Expectations are that whether AI investment optimism holds or risk-off sentiment spreads further will also affect bitcoin’s future direction.