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Why South Korea’s KOSPI Just Crashed 12%

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KOSPI_2026-03-04_09-21-17


Escalating geopolitical tensions amid the war in Iran are part of the reasons behind South Korea’s worst stock market crash in decades.

The benchmark market index in South Korea, KOSPI, saw a massive decline during the last trading session, dropping by more than 12%. Undoubtedly, this last drop represents a significant escalation from earlier market movements and highlights the increasing volatility in local equity markets amid the war in Iran.

Worst Stock Market Crash Since 2008

As of this writing on Wednesday, KOSPI is down by more than 12%. On the previous trading day, the benchmark index lost another 7%, marking what appears to be the worst performance since 2008.

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Both Kosdaq and KOSPI hit the threshold for an emergency circuit breaker on Korea’s stock exchange, triggering 20-minute trading halts.

Commenting on the matter in a report for CNBC was Lorraine Tan, Asia’s director of equity research at Morningstar, who said:

“The decline in the KOSPI can broadly be attributed to the single-name concentration that we see in the Korean markets. […] We believe that the drop in share prices is partly driven by profit taking after a strong runup amidst a risk-off environment but also implies growing concern that the AI datacenter adoption pace might slow down due to its significantly higher energy costs than regular data centers.”

Additionally, analysts point out that South Korea’s economy is highly sensitive to oil prices, making it even more vulnerable during the war in the Middle East.

KOSPI_2026-03-04_09-21-17
Source: TradingView

Global Tensions in Markets

Markets in Japan are also under pressure. Japan’s flagship market index, the Nikkei, is down over 5% over the last 48 hours, while the US Stock Market has been able to recover somewhat following statements from respective parties.

Crypto markets remain flat on the day. Bitcoin is up 0.6% in the past 24 hours, while the majority of altcoins are trading in the range between -1% and +1%. The total capitalization is around $2.3 trillion, down 0.1% on the day, according to CoinMarketCap.

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Crypto World

Bitwise Cuts $233K Check to Bitcoin Devs Using BITB ETF Profits

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • Bitwise donated $233K from BITB profits to Bitcoin nonprofits in its second annual giving cycle.
  • BITB now manages $2.7B in assets, directly increasing the size of this year’s developer donation.
  • Brink, OpenSats, and HRF’s Bitcoin Fund split the contribution across open-source development grants.
  • Bitwise CIO Matt Hougan says BITB is the only ETF with an ongoing profit-share pledge to developers.

Bitwise Asset Management has donated $233,000 to three Bitcoin-focused nonprofits. The funds come directly from profits generated by its Bitwise Bitcoin ETF, ticker BITB. 

This marks the second consecutive year the firm has fulfilled a pledge made at the ETF’s January 2024 launch. The commitment ties 10% of gross annual profits to open-source Bitcoin development support.

Bitwise Bitcoin ETF Profits Fund Developer Grants for Second Straight Year

Bitwise directed the donation across three organizations. Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund each received a portion. 

All three groups focus on funding and training developers who maintain Bitcoin’s core infrastructure. None of them operate for profit.

The pledge originated when BITB first launched in January 2024. Bitwise committed to donating 10% of gross profits annually. The first donation followed that same year. This second contribution signals the firm intends to make the practice routine.

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BITB has grown considerably since its debut. The fund now manages approximately $2.7 billion in assets under management. That growth directly increased the size of this year’s donation compared to the first. 

Larger assets mean larger profits, and a larger share flows to developers.

Bitwise’s Chief Investment Officer Matt Hougan pointed out that BITB stands alone among ETFs in making this type of ongoing commitment. 

No other Bitcoin ETF has structured a recurring donation tied to fund profits. The observation drew attention within the Bitcoin community.

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Brink, OpenSats, and HRF Bitcoin Fund Split the $233,000 Contribution

Brink focuses on supporting full-time Bitcoin protocol developers through fellowships and grants. OpenSats funds open-source contributors working on Bitcoin and related projects. 

The Human Rights Foundation’s Bitcoin Development Fund supports developers in regions where financial freedom is restricted.

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Each organization allocates funds independently based on its own grant criteria. Bitwise does not direct how recipients distribute the money. The structure keeps the donation at arm’s length from any product or promotional interest.

Bitwise shared the announcement publicly via its official channels. The post credited investors who chose BITB for making the donation possible. It framed the contribution as a reinvestment into the ecosystem supporting the ETF itself.

The broader Bitcoin development community responded positively. The model connects institutional capital with open-source infrastructure in a direct, measurable way. Observers noted it creates a feedback loop: more BITB investment leads to more developer funding.

Bitwise has not disclosed projections for next year’s donation. The amount will depend on BITB’s profit performance through 2025.

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Eight Sleep Secures $50M in Funding to Build AI Sleep Agents

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Stablecoin firm Tether has led a $50 million strategic investment round in sleep technology startup Eight Sleep, to help the company integrate artificial intelligence agents into its sleep tech products.    

The latest funding round was announced on Tuesday, with Eight Sleep raising $50 million at a $1.5 billion valuation. It follows a $100 million raise last August. The firm specializes in sleep health products, primarily across bedding and supplements.

In an announcement on Tuesday, Tether expressed its strong conviction in health technology to support “longevity, performance, and disease prevention,” and will collaborate with Eight Sleep to bring artificial intelligence-based health technology products to market.

​Tether has been using its capital stockpile to invest in a wide range of areas outside crypto. Its investments span the gold sector, media, biotechnology and AI. The firm has also made multiple attempts to buy professional football clubs.

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Source: Matteo Franceschetti

“Technologies that can turn continuous health data into clear, practical insights will shape the future of consumer health and wellness,” Tether said.

“The investment is designed to empower Eight Sleep and establish a long-term collaboration to build advanced AI-driven health technology using, among others, Tether’s QVAC architecture and leveraging QVAC’s edge intelligence to enhance Eight Sleep products,” it added.

Tether’s QVAC is a privacy-focused health tech service launched in December that enables users to integrate their bio-health data from multiple services or products, like smart rings, into a single platform, supported by local on-device AI to help users with data management and health insights.  

Eight Sleep has stated that it plans to build a sleep-focused AI agent to support its Pod, a sleep tech product that automatically adjusts bed temperature, elevation, and sound based on factors such as heart rate, breathing, snoring, time asleep and sleep stages.

​Related: Stablecoin giving grows as ‘crypto philanthropy’ matures: Report

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​The Pod already has AI integrations to track sleep health data; however, Eight Sleep has said the funding will help evolve the company’s current AI tools and capabilities.

“We’ve built the most seamless AI-powered health sensing system in the world, and this partnership with Tether gives us the infrastructure to take that intelligence beyond the Pod, into every aspect of personal health,” noted Franceschetti as part of Tether’s announcement.