Bitcoin fell as low as $80,154 on Thursday, reaching its lowest level in more than three weeks. Investors are increasingly nervous about a sharp sell-off in South Korean stocks, rising inflation in the United States and the possibility of further interest rate hikes.
Bitcoin Hit by Technology Stock Sell-Off
The world’s largest cryptocurrency has experienced significant volatility over the past week. After climbing above $84,000, Bitcoin faced a sharp sell-off that pushed its price down toward $80,200. As shown by data from our Terminal, the cryptocurrency later recovered quickly above $82,000, although it remains below its weekly highs.
The decline does not appear to have been triggered by any major problem within the cryptocurrency sector itself. Instead, pressure is coming primarily from traditional financial markets, where investors have been aggressively selling riskier assets.
The biggest shock came from South Korea. The country’s benchmark KOSPI index plunged 7.57% in a single session to 5,554 points, marking its lowest closing level since early April. Over the entire week, the index has already lost approximately 15.5%.
Samsung and SK Hynix Take a Heavy Hit
Technology companies that have benefited from the artificial intelligence boom in recent years were among the hardest hit. Shares of memory chipmaker SK Hynix fell by around 11%, while Samsung Electronics dropped 9.5%.
Investors are becoming increasingly concerned about whether massive investments in AI infrastructure will ultimately generate sufficient returns. Growing competition from China and capital outflows from foreign investors have added further pressure.
The situation became serious enough for the South Korean stock exchange to temporarily halt trading for 20 minutes. Kim Seok-hwan, an analyst at Mirae Asset Securities, also warned that elevated volatility could continue.
Another major test will come on October 28 and 29, when SK Hynix and Samsung are expected to report their third-quarter financial results.
U.S. Inflation Adds to Bitcoin’s Problems
New inflation data from the United States also failed to improve market sentiment. Annual inflation accelerated to 3.7% in September, coming in above market expectations.
Investors have therefore started pricing in the possibility that the Federal Reserve could raise interest rates again. Higher interest rates generally reduce the attractiveness of risk assets, including Bitcoin.
Oil prices are providing little relief either. Brent crude continues to trade at around $106.10 per barrel as tensions in the Middle East remain elevated.
For Bitcoin, the key question now is whether global stock markets can stabilize and concerns about tighter monetary policy begin to ease. The $80,000 level remains an important psychological threshold, although a move below it would not necessarily mean that another major sell-off is about to begin.
