- Bitcoin fell to around $81,000 as hot US inflation hit Nasdaq, Nikkei and KOSPI.
- US inflation hit 3.7%, against a 3.6% forecast, lifting rate hike odds to 50/50.
- KOSPI fell 8%, and the Nikkei fell up to 5.3% as the chip sell-off spread in Asia.
Bitcoin slipped below $81,000 on Thursday as a technology-stock sell-off spread across Wall Street and Asian markets, with Japan’s Nikkei and South Korea’s KOSPI suffering sharp losses. Hotter-than-expected US inflation at 3.7% in September added to concerns that the Federal Reserve could keep monetary policy tighter for longer, putting pressure on risk assets from chipmakers to cryptocurrencies.
Hot US Inflation and AI Concerns Trigger Global Sell-Off
Fuel prices, lifted by the Iran war, pushed inflation up. Investors also faced doubts about AI earnings after a long rally. Experts have cited the inflation print and lower-than-expected earnings from Anthropic as hurting sentiment toward AI companies. A gauge of US chip stocks had its longest daily losing streak since May 2025.
How the Losses Traveled
- Wall Street: The Nasdaq fell about 2% and the S&P 500 1.1% on Wednesday, and futures pointed lower again on Thursday. The Russell 2000 entered a correction.
- Nikkei: The index dropped as much as 5.3% on Thursday. SoftBank fell almost 10% and Kioxia 11%.
- KOSPI: It fell 8%, triggering a trading halt. SK Hynix lost almost 11% and Samsung Electronics 9.3%. The index had climbed from under 2,300 in April 2025 to over 9,300 in June, and the two chipmakers are now down 58% and 44% from their peaks.
- Wider Asia: MSCI’s Asia Pacific gauge fell 2.2%, its lowest since July. China’s CSI 300 lost as much as 1.8%, and the Star 50 index gave up all its gains for the year.
- Bitcoin: Crypto liquidations were reported at more than $951 million. Bitcoin trades around the clock, so it can react to Wall Street’s close while Asian markets are open.
Is Bitcoin Trading Like a Tech Stock Again?
Bitcoin’s decline despite a weaker dollar suggests that investors were prioritizing risk reduction over the potential support from currency movements. The dollar fell 0.6%, while the yen and euro strengthened. US Treasury yields also declined, with the 10-year yield dropping 0.09 percentage points to 5.1%, reflecting a shift in market positioning as investors reassessed the inflation outlook.
Under normal conditions, a weaker dollar can support Bitcoin by making dollar-priced assets more attractive to some investors. However, Bitcoin’s slide alongside technology stocks suggests that concerns about interest rates and stretched AI valuations were weighing more heavily on sentiment.
The move does not establish that Bitcoin has permanently returned to trading like a technology stock. However, it highlights how macroeconomic uncertainty can drive simultaneous selling across crypto and equities, even when currency movements might otherwise offer support.
Rate Hike Odds and Bitcoin Price Levels
Expectations for the Federal Reserve’s October policy decision shifted sharply after September inflation came in hotter than anticipated. Earlier in the week, markets assigned roughly an 80% probability to the Fed holding rates steady. Following the inflation report, the implied probability of a rate hike moved closer to 50/50, increasing uncertainty for risk assets such as Bitcoin.
Bitcoin traded between approximately $83,000 and $84,000 before retreating toward $81,700. Traders are now watching three important levels:
- $80,000: The line bulls need to defend, about 2% below the current price by my calculation.
- $77,000: Comes into play if $80,000 breaks, roughly 6% lower.
- $84,000: If Bitcoin holds $80,000 and reclaims this level, the expert calls the drop “just noise.”
Investors will also monitor TSMC’s third-quarter results for clues about semiconductor demand and the durability of the AI investment outlook. However, Bitcoin’s near-term direction will likely depend on the interaction between Fed rate expectations, broader risk appetite, and whether buyers can defend the $80,000 support level.
Related: Crypto Whale Dumps $89.5M in Bitcoin to Buy Ethereum as ETH FOMO Explodes
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
