Tom Lee warned that the sharp decline in the South Korean stock market could spill over into the cryptocurrency sector. He highlighted that margin liquidations are currently occurring at South Korean brokerages, creating potential contagion risks for digital assets. Lee noted that Ethereum faces specific short-term selling pressure due to these developments. Since South Korean investors are major holders of cryptocurrencies, forced liquidations in traditional equity markets may trigger correlated sell-offs in crypto holdings, particularly affecting ETH.