Live updates: Bitcoin trades near $81,000 as South Korea's chip-heavy Kospi continues to plunge
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Bitcoin traded near $81,000 despite a recent drop of 2.75% over 24 hours amid global equity market jitters. South Korea's chip-heavy Kospi index plunged 7.5% overnight, falling 20% over seven trading days, marking its worst stretch since March 2020. The pressure on bitcoin follows a hotter-than-expected U.S. inflation report and a selloff in AI stocks, notably CoreWeave.
Why it matters
The source highlights that the stronger-than-forecast inflation data increases the likelihood of another Federal Reserve rate hike, which typically strengthens the dollar and puts downward pressure on assets like bitcoin. The widening selloff in equities and AI stocks is impacting crypto markets, signaling broader investor caution. The data underlines interconnection between traditional and crypto markets through inflation and monetary policy.
Key context
The Kospi index's current slump relates to declines in major chipmakers like Samsung and SK Hynix, and it reflects global market contagion following a U.S. equity slump. Bond markets are rallying, with the U.S. 10-year Treasury yield falling from a recent high of 5.36% to about 5.085%-5.088%. Ethereum's sharper decline relative to bitcoin is partly attributed to elevated bond yields reducing demand for DeFi built largely on Ethereum. Upcoming U.S. PPI data is set to further influence market direction.
Key numbers and entities
Bitcoin traded near $81,000, down 2.75% in 24 hours; Kospi down 20% in seven sessions; U.S. 10-year Treasury yield at approximately 5.085%. Ethereum recovered to around $2,360 from a two-month low of $2,314. CoreWeave (CRWV) shares fell over 15% recently. Anthropic reported Q3 revenue of $16.8 billion. Zcash (ZEC) dropped 11%, and U.S. spot bitcoin ETFs lost about $261 million on Wednesday.
What remains unclear
The source does not provide detailed reasons why bitcoin briefly spiked to nearly $84,000 after the inflation report before declining. It also does not specify broader investor sentiment drivers beyond inflation and AI selloff influences. The potential longer-term impact of PPI data and Fed decisions on crypto markets remains to be seen.