Bitcoin recovers from sub-$81,000 dip as KOSPI drops 6% and Nasdaq futures slide
In brief
- Bitcoin fell to just under $81,000 at 00:50 UTC, then recovered above $83,000, per CoinDesk data.
- South Korea's KOSPI plunged more than 6% intraday, hitting its lowest level since late July.
- Samsung Electronics and SK Hynix each fell roughly 8%, extending losing streaks to five sessions.
- Thursday's U.S. CPI report is the next major catalyst traders are watching.
Bitcoin wasn't the only token to bounce. Ether rebounded from five-day lows, and XRP turned higher after touching three-week lows, according to CoinDesk. Zcash, solana and several other major tokens followed a similar pattern.
Korean chip stocks lead the selloff
The KOSPI fell below 6,000 and hit its lowest level since late July, CoinDesk reported. It was still down roughly 6% in morning trade. Samsung Electronics and SK Hynix each fell roughly 8%, extending their losing streaks to five sessions, as investors worried about AI-related valuations and rising competition from Chinese memory-chip producers.
Other markets fell less sharply. Hong Kong's Hang Seng slipped 0.4%, and the 0.6% drop in Nasdaq futures extended Monday's 0.78% decline in the tech-heavy index.
Oil and the dollar
Energy is the other pressure point. WTI crude traded near $92.67 (it's held most of Monday's recovery from below $90), and Brent hovered around $106 a barrel after a three-day rally. CoinDesk said fresh attacks in Saudi Arabia and continued threats to shipping through the Strait of Hormuz have kept energy-market uncertainty elevated.
In CoinDesk's view, that's a headwind for crypto: higher oil raises inflation risks and strengthens the case for Fed rate hikes. The Dollar Index held near 102.50, its highest since April of last year.
Thursday's CPI report
Crypto traders are now looking to Thursday's U.S. consumer price index report as the next major catalyst.
Paul Howard of Wincent expects big institutions to hedge rather than cut exposure ahead of the data.
“With US inflation data approaching, I expect institutional investors to focus on adding protection through derivatives and hedging strategies rather than materially reducing their underlying exposure,” said Paul Howard, senior director at market-making firm Wincent.
If that holds, the pressure will show up in derivatives demand rather than in spot selling. Howard's view, as quoted by CoinDesk, is that institutions are adding protection without giving up their positions.
