Bitcoin dips below $80,000 as Samsung-led risk aversion in tech and a hawkish Fed weigh on crypto
Bitcoin (BTC) fell below $80,000 during Thursday’s Asian trading session, reversing a two-day rebound as a fresh wave of risk aversion swept through global technology stocks.
The largest cryptocurrency dropped from above $81,700 to around $79,800, dragging the broader crypto market lower and triggering a wave of liquidations among traders betting on a rally.
Tech jitters spill into crypto
The selloff began in Asia, where Samsung shares fell more than 5% after its semiconductor division missed elevated investor expectations.
While the chip unit reported a 15-fold surge in operating profit to 106.5 trillion won for the three months through September, the result fell just short of the average analyst estimate of 108.5 trillion won. Samsung also said it expects capital expenditure to reach 84.4 trillion won, or about $63 billion, this year—up roughly 60%.
Group-wide net income still rose 39%, but the disappointment was enough to unsettle markets. South Korea’s Kospi fell more than 2%, while futures tied to the Nasdaq declined 1.4%.
That weakness rippled into crypto, where bitcoin has increasingly traded alongside high-growth technology stocks as investors reassess exposure to risk.
Fed holds, but hawkish signals linger
Overnight, the Federal Reserve kept its benchmark interest rate unchanged in the 3.75%–4% range, delivering what has been described as a hawkish hold.
Chair Kevin Warsh acknowledged that progress is being made on inflation but said price pressures remain too high. ING still expects the central bank to deliver another rate increase in December, following September’s hike.
BlackRock's Chief Investment Officer of Global Fixed Income and Head of the Global Allocation Investment Team Rick Rieder struck a cautious tone, saying investors should avoid making a “heroic directional call” on rates.
“Real yields remain attractive, and there’s considerable income available across high-quality fixed-income markets,” Rieder said. “We continue to favor a moderate duration posture, taking advantage of today’s income opportunities while remaining patient as this unusually divergent economy evolves.”
For crypto, the risk is that a hawkish tone keeps real or inflation-adjusted bond yields elevated and may limit capital inflows into risky, speculative assets.
Liquidations mount
Bitcoin’s renewed slide below $80,000 accelerated selling across derivatives markets.
Futures positions worth $356 million were liquidated over the past 24 hours, according to market data. Long positions – bets that prices would rise – accounted for $205 million of that total.
Bitcoin futures saw $94 million in liquidations, while ether futures accounted for $72 million.