Summary
- Bitcoin fell below $81,000 amid weakness in South Korean stocks and US technology shares, then recovered the $83,000 level.
- Rising oil prices are fueling inflation concerns, while the possibility of another interest-rate increase by the Federal Reserve is weighing on the digital-asset market.
- Markets are watching this week's US consumer price index (CPI) as a key variable for future price moves, with institutional investors expected to manage risk using derivatives and hedging strategies.
Forecast Trend Report by Period
Bitcoin fell below $81,000 intraday as South Korean stocks and US technology shares weakened, but later rebounded to reclaim the $83,000 level.
CoinDesk reported on Oct. 13 that Bitcoin slipped below $81,000 at about 12:50 a.m. UTC before buying interest returned and pushed it back above $83,000. Ether also rebounded after falling to its lowest level in five days, while XRP turned higher after touching a three-week low. Major altcoins including Solana and Zcash showed a similar pattern.
The crypto market's initial decline coincided with a sharp selloff in Asian equities. South Korea's Kospi index dropped more than 6% intraday, falling below 6,000. Samsung Electronics and SK Hynix led the losses, each falling about 8%. Investor sentiment was dented by concerns over elevated valuations for artificial intelligence-related companies and by fears that Chinese memory-chip makers are catching up technologically.
Global technology stocks also weakened. Hong Kong's Hang Seng Index fell 0.4%, while Nasdaq futures slid 0.6%. The Nasdaq index had closed down 0.78% a day earlier. Selling pressure spread across risk assets, adding to volatility in the crypto market.
Inflation concerns tied to higher oil prices also weighed on sentiment. West Texas Intermediate crude traded near $92.67 a barrel, while Brent held around $106. Additional attacks on Saudi Arabia and uncertainty over maritime shipping through the Strait of Hormuz have supported energy prices. Higher oil prices could add to inflationary pressure and increase the likelihood of another Federal Reserve rate hike, a negative factor for digital assets.
Markets are now watching this week's US consumer price index as a key driver of near-term price moves. Paul Howard, senior director at Wincent, said institutional investors would likely focus on managing risk through derivatives and hedging strategies rather than sharply cutting existing crypto holdings ahead of the inflation report. They are more likely to keep core positions in place while using derivatives to guard against downside risk.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.