Tom Lee said the crash in Korean equities could spill over into crypto, and he flagged short-term pain for Ethereum (ETH) if margin calls prompt investors to liquidate other holdings.

The chairman of BitMine Immersion Technologies (BMNR) and co-founder of Fundstrat said on X on Tuesday that Ethereum’s price might decline because of a significant sell-off in South Korea’s benchmark Korea Composite Stock Price Index, or KOSPI. Lee indicated two channels. One is the margin liquidations at Korean brokerages. The other is the amount of cryptocurrency held by Korean investors.

Tom Lee Flags Potential Crypto Selling From Korean Margin Calls

Margin liquidations occur when an investor borrows against collateral to trade, and the broker forcibly…