Key Takeaways

• South Korea’s benchmark KOSPI index plummeted 4.9%, activating circuit breakers for the sixth occasion in 2025
• Samsung projected a 19-fold surge in Q2 operating profit, yet its stock price declined nearly 7%
• Market experts suggest AI-related earnings projections have become unsustainably elevated
• Individual traders capitalized on the downturn, snapping up 3.2 trillion won worth of stocks
• SK Hynix unveiled a $28 billion American share offering, attracting preliminary investor attention

Tuesday proved turbulent for South Korea’s equity markets. The KOSPI benchmark concluded trading down 4.9%, settling at 7,656.31. During intraday trading, the index had plummeted more than 8%.

Trading halts were activated through circuit breaker mechanisms. This marked the sixth such interruption in 2025 amid semiconductor stock turbulence.

Record Samsung Results Meet Market Skepticism

Samsung Electronics found itself in the eye of the storm. The tech giant projected second-quarter operating profit at 89.4 trillion won, approximately $58 billion. This represents a nineteen-fold expansion compared to last year’s corresponding quarter and marks its third consecutive record-breaking period.

Yet Samsung’s shares tumbled nearly 7% during the session. Intraday declines exceeded 10% at their worst.

Market observers indicate these impressive figures had already been priced into valuations. Seo Sang-young from Mirae Asset Securities noted, “Market expectations have grown too high to be raised further.”

Competitor SK Hynix declined 6.1%. Japan’s memory chip manufacturer Kioxia experienced losses surpassing 10%.

The KOSPI had more than doubled year-to-date before reaching an all-time peak in late June. Since that milestone, approximately 20% has evaporated.

Changing Dynamics in AI Investment Sentiment

The market’s response indicates a transformation in investor attitudes toward artificial intelligence stocks. Throughout recent months, semiconductor companies enjoyed rewards merely for exceeding earnings projections. That pattern now appears to be evolving.

Charu Chanana of Saxo Markets observed, “Strong earnings are no longer enough.” She emphasized that investors now demand robust earnings, optimistic guidance, and evidence of sustainable pricing advantages.

Albert Yong from Petra Capital Management suggested the sharp decline reflects investor attention shifting toward the memory cycle’s long-term trajectory rather than immediate quarterly results.

International investors offloaded 2.9 trillion won in Korean equities Tuesday. Domestic retail traders countered by purchasing 3.2 trillion won, moderating the index’s early steep losses.

AI Investment Activity Continues Despite Volatility

Not every development suggested retreat from artificial intelligence exposure. SK Hynix initiated an American share issuance targeting approximately $28 billion, generating initial enthusiasm from significant institutional investors.

Broadcom extended its semiconductor supply agreement with Apple through 2031, alleviating worries that Apple might internalize additional chip production.

Wall Street advanced overnight. The Dow increased 0.29%, the S&P 500 rose 0.72%, and the Nasdaq gained 1.12%, buoyed by optimism surrounding AI-powered earnings performance.

Additional Market Developments

LG Energy Solution fell 6.4% following its projection of a 77% operating profit decline attributed to softening electric vehicle demand.

Hanwha Ocean crashed 22.7% after Canada selected German submarines over South Korean alternatives.

Crude oil prices advanced following a tanker incident near the Strait of Hormuz. US crude climbed to $68.92 while Brent reached $72.34.

Investors remain attentive to the upcoming Federal Reserve meeting minutes release, the inaugural publication under new Fed Chair Kevin Warsh.

Binance has introduced a product for bitcoin BTC$63,000.88 holders looking to earn extra yield on their investment without selling any of it, joining the likes of BlackRock in helping them maximize returns.

The product, BTC Yield, is available inside Binance Earn and is designed exclusively for people who already hold bitcoin.

Users deposit their bitcoin into the product and receive an internal position called BTCY, which tracks their share in the strategy. Everything remains denominated in BTC, and the product cannot be funded with stablecoins or other assets.

Binance holds the deposited bitcoin as collateral while systematically selling BTC call options, that is, it writes insurance against price rallies in BTC. The call seller, or writer, gets compensated with a premium. Binance collects those premiums and shares most of them with participants.

This covered-call approach, common in crypto and traditional finance, has typically required deep options knowledge to execute. Binance’s version makes it accessible to regular traders by handling everything behind the scenes.

Two types of return

The product generates potential returns in two ways.

First, a portion of the collected premiums is converted to bitcoin and distributed to users’ spot accounts every Friday as a possible weekly payout.

Ethereum traded near $1,777.49 at the time of writing, up 0.5% in the past 24 hours, according to crypto.news market data. 

The token had a 24-hour low of $1,732.10 and a high of $1,819.88, while daily trading volume stood near $17.08 billion.

The move kept ETH close to the $1,800 area, which traders now view as the main short-term resistance zone. The token has recovered from the sharp June selloff after buyers defended the $1,500 to $1,600 area.

The current setup has turned attention to a daily close above $1,800. Analysts say that level could decide whether ETH builds a stronger recovery or stays trapped in a range above $1,700.

Ethereum climbed about 12% from July 1 as weaker U.S. jobs data and renewed spot ETF inflows brought buyers back into the market. According to SoSoValue data, on July 6, Ethereum spot ETFs recorded a total net inflow of USD 29.082 million, led by BlackRock’s ETHA with USD 29.742 million in single-day net inflows. 

Analysts watch $1,800 and $1,844

Analyst Ali Charts said Ethereum is testing the 0.8 MVRV Pricing Band near $1,796. He said the same area aligns with the TD Sequential resistance trendline, making it a key technical level for traders.

Ali said a daily close above $1,796, followed by a hold as support, would strengthen the bullish case. He added that a move through the TD risk line at $1,816 could open the way for a test of the channel resistance near $1,844.

“A break above both $1,796 and $1,816 could trigger a bullish breakout,” Ali said in his Ethereum setup. He placed Ethereum’s realized price target near $2,245 if buyers clear those levels and hold momentum.

Daan Crypto Trades also pointed to $1,800 as the level that matters most on the current timeframe. “If bulls can get a daily close over $1,800, that’d be the first sign of strength for me,” he said in an X post.

The lower level remains clear. Daan and Ali both pointed to $1,750 as the support that bulls must defend. A loss of that level would weaken the current setup and could return focus to the $1,700 area.

Indicators support short-term recovery

The ETH/USDT daily chart shows a recovery from the June low. ETH bounced from the $1,500 to $1,600 range and moved toward $1,800 before cooling slightly.

Momentum indicators support the rebound. The MACD histogram is positive near 31.83, while the MACD line sits near -4.67 and above the signal line near -36.50. This shows improving momentum, though the MACD line still needs to move above zero to confirm a stronger trend shift.

The RSI is also improving. It sits near 55.95, above its moving average near 43.25. That places RSI above the neutral 50 level, which shows buyers have short-term control without pushing the token into overbought territory.

As previously reported, Ethereum had already shown a rare TD buy signal while spot Ethereum ETF inflows returned. 

Binance liquidity improves, but reserves raise risk

On-chain data gives a mixed view. CryptoQuant analyst Arab Chain said the ETH Binance 30-day exchange liquidity ratio rose to about 5.22. The reading was based on about 20.32 million ETH in 30-day trading volume and around 3.8 million ETH in Binance reserves.

That means each ETH held on Binance turned over more than five times during the period. The reading points to active trading and better use of available exchange liquidity. It also suggests that Binance can support strong ETH trading activity without a large rise in reserves.

Still, rising exchange supply remains a risk. CryptoQuant analyst BorisD said Binance held about 3.893 million ETH, while Bitfinex held 2.2 million ETH, OKX held 1.18 million ETH, and Bybit held 314,000 ETH. He said ETH inflows into Binance and OKX could add selling pressure if demand fails to absorb the extra supply.

Moreover, Binance users had already increased their ETH balances by 10.17% to about 4.14 million ETH in its June proof-of-reserves snapshot. Larger user balances can reflect deposits, purchases, internal transfers, or account activity, so the data does not show one clear reason.

The next test sits near $1,800. A clean daily close above that level could push ETH toward $1,844, then $2,060 and $2,245. A rejection, or a break below $1,750, would keep Ethereum in a choppy range and raise the risk of another move toward $1,700.

Key Takeaways

• Sixteen months have passed since Trump’s executive order establishing a Strategic Bitcoin Reserve, yet implementation remains stalled
• A jurisdictional battle between Treasury and Commerce departments has created operational paralysis
• DOJ involvement seeks to clarify which agency possesses legitimate legal oversight
• Two congressional bills—the BITCOIN Act and ARMA Act—aim to provide statutory framework for the reserve
• America’s current Bitcoin holdings total 328,372 BTC, valued at approximately $21 billion

A bureaucratic turf war between federal agencies has thrown a wrench into the Trump administration’s ambitious plan to establish a Strategic Bitcoin Reserve.

In March 2025, President Trump issued an executive order designating the Treasury Department as the custodian for this digital asset reserve. The directive also called on additional federal entities to contribute to the stockpile through confiscated assets.

However, more than a year later, the initiative has yet to materialize. According to a Bloomberg report, the Commerce Department has now positioned itself as an alternative candidate for managing the cryptocurrency holdings.

The central dispute revolves around regulatory jurisdiction. Concerns have surfaced regarding Treasury’s legal capacity to manage Bitcoin, with some citing the cryptocurrency’s inherent price fluctuations as a complicating factor.

The Department of Justice has entered the fray, collaborating with both competing agencies to determine viable legal pathways forward.

The White House has maintained neutrality in this inter-agency conflict. Press Secretary Liz Huston stated the administration is “continuing to evaluate the best structure” for implementing the reserve.

Legislative Efforts to Establish Legal Framework

Congressional lawmakers have introduced two separate bills designed to provide statutory legitimacy to the reserve concept. Both the BITCOIN Act and the ARMA Act, filed in May, propose accumulating up to one million Bitcoin over a five-year timeline using fiscally neutral mechanisms.

White House cryptocurrency advisor Patrick Witt characterized ARMA as “Version 2” of the BITCOIN Act. He noted that significant White House resources have been dedicated to examining the legal complexities surrounding reserve establishment.

ARMA includes provisions requiring any Bitcoin deposited into the reserve to remain untouched for a minimum of two decades, with the sole exception being sales to offset the national debt, which is nearing $40 trillion.

Neither bill has advanced to passage. Should Republicans forfeit their House majority in upcoming midterm elections, the probability of legislative success would diminish substantially.

America’s Existing Bitcoin Position

The US government presently controls 328,372 Bitcoin, with a market value hovering around $21 billion. This position establishes the United States as the world’s largest sovereign Bitcoin holder.

That said, segments of these holdings have been liquidated periodically through judicially mandated sales.

At the time Trump signed his initial executive order, Bitcoin was trading near $93,000. The price has subsequently declined to approximately $64,000, representing a roughly 33% decrease.

Despite the delays and price volatility, some industry observers maintain optimism. Tim Kotzman, host of the Bitcoin Treasuries Podcast, suggested the reserve legitimizes “an entirely new category of capital allocation.”

On a global scale, 15 nation-states maintain Bitcoin holdings. El Salvador stands alone as the only country to have formally institutionalized a Bitcoin reserve program with regular acquisition protocols.

According to his latest financial disclosure documents, Trump personally holds Bitcoin assets exceeding $50 million.

Gold is attempting to break its medium-term trend, with the latest US labour market data acting as the main catalyst. The US employment report released on 2 July came in noticeably weaker than expected, with the pace of hiring slowing to its lowest level in several months. This may have dampened expectations of a near-term Federal Reserve rate hike, while the minutes of the Fed’s June meeting, due to be released on 8 July, could provide further insight into how long this pause in the central bank’s rhetoric is likely to last. For now, markets are pricing in a more dovish scenario, supporting safe-haven assets such as gold.

Technical Analysis

On the four-hour chart, XAU/USD declined from the $4,221 area in late June to around $3,942, where a recovery began. The decline formed a descending wedge, with its lower boundary attracting strong buying interest. This resulted in a sharp rebound, accompanied by a decisive breakout above both the pattern and the current market profile.

On 2 July, price closed above the upper boundary of the market profile at $4,091 and, if the rally continues, could target the base of the wedge. Should the market reverse, price is likely to retest the profile’s high-volume area, while the Point of Control (POC) at $4,030 and the lower profile boundary at $3,971 could provide support for buyers.

The RSI + MAs indicator currently stands at 62, 65 and 55. All three lines remain above the neutral level and continue to point higher, while the moving averages are still signalling bullish momentum. However, it is worth noting that the RSI has already entered overbought territory, suggesting that expectations for a substantial continuation of the rally should remain cautious.

Key Takeaways

The breakout from the descending wedge may have been interpreted by market participants as the beginning of a local trend reversal. However, a move towards the red resistance zone and a test of that area remain highly uncertain, particularly ahead of the release of the Federal Reserve’s June meeting minutes, which could significantly reshape market expectations.

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Naver Financial has postponed the completion of its all-stock share swap with Dunamu for a second time, extending the closing date to Dec. 31 as regulatory approvals remain pending.

According to a regulatory filing disclosed by Dunamu, the planned comprehensive share exchange with Naver Financial has been rescheduled from Sept. 30 to Dec. 31, following an earlier postponement that moved the timeline from June 30 to September.

Share swap awaits regulatory approvals

The filing kept the exchange ratio unchanged at 2.5422618 Naver Financial shares for every one Dunamu share. It also repeated that completion of the transaction depends on approvals from South Korea’s Fair Trade Commission, clearance for changes in major shareholders under the Credit Information Act, and notifications required under the Act on Reporting and Use of Specific Financial Transaction Information.

Dunamu said in the filing that delays in those approval processes could push the schedule back further or even prevent the share exchange from being completed. The company also noted that ongoing discussions around South Korea’s proposed Digital Asset Basic Act could affect the transaction depending on the final form of the legislation once it is enacted and implemented.

The latest delay comes after Naver Financial previously postponed the transaction in March, when it moved the expected completion date from late June to Sept. 30 while citing regulatory approval procedures and legal developments. 

At the time, the company said the deal remained subject to several government approvals and could face additional delays or cancellation depending on the outcome of those reviews.

Merger continues under regulatory scrutiny

Regulatory oversight has also intensified since the transaction was first announced. In April, South Korea’s Financial Supervisory Service ordered Dunamu to correct omissions in its disclosure related to the merger after identifying missing or inaccurate information concerning future corporate restructuring plans and other matters important to investors.

The regulator’s review came as lawmakers continued debating the Digital Asset Basic Act, with local reports indicating that proposed limits on major shareholders of virtual asset exchanges could affect Naver Financial’s plan to acquire full ownership of Dunamu. Dunamu has previously stated that it intends to proceed with the transaction despite the legislative uncertainty.

The all-stock deal, confirmed in late 2024, values Dunamu at around $10 billion and is expected to bring the operator of Upbit under Naver Financial. The companies have also outlined plans to cooperate on digital asset services, including the development of the Silk Pocket stablecoin wallet alongside blockchain investment firm Hashed and the Busan Digital Exchange.

U.S. spot bitcoin ETFs pulled in $265.69 million on Monday, the largest daily inflow in over a month and the second in three sessions after July 2 broke a long run of outflows, per SoSoValue data. Ether ETFs added $20.66 million the same day, led by BlackRock’s ETHA at $23.29 million.

BlackRock’s IBIT absorbed $209.40 million of the bitcoin total, with ARKB taking in $32.98 million and Grayscale’s mini BTC fund adding $42.25 million. GBTC shed $44.45 million, the only fund in the red.

The daily turn has not fixed the weekly picture yet. Spot bitcoin ETFs still lost a net $526.6 million over the shortened holiday week, an eighth straight week of negative flows. Ether ETFs lost $13.7 million on the week.

Total bitcoin ETF assets climbed back to $77.32 billion from a June 30 low of $70.95 billion, helped by both the price recovery and the returning bid. Bitcoin traded near $63,200 as the data landed, per CoinDesk data.