Bitcoin (BTC) dropped to its lowest price in over three weeks on Thursday, reflecting broader risk-off sentiment as major South Korean stock indices recorded sharp declines.
South Korean Market Turmoil Impacts Crypto
BTC reached a local low of $80,154 on Bitstamp, a price level last observed on September 20, as selling intensified on South Korea’s equity markets. Data from TradingView confirmed the drop, coinciding with a 7.5% plunge in the Korea Composite Stock Price Index (KOSPI), which concluded Thursday’s session at 5,554 points.
The fall marked KOSPI’s largest daily drop since early April and extended its week-to-date decline to 15.5%. The sell-off was led by technology stocks, with SK Hynix closing 11% lower and Samsung Electronics down 9.5% on Thursday.
Analysts cited concerns over rising debt from artificial intelligence investments, outbound foreign capital, and intensifying Chinese competition as primary reasons for the equity rout. The KOSPI’s 200-day moving average slipped to 5,450 points, a level not seen since late July.
According to Mirae Asset Securities analyst Kim Seok-hwan, global macroeconomic challenges are expected to persist.
Volatility may continue in the near future, as deteriorating domestic supply-demand dynamics have left the market more sensitive to external shocks, while a rapid improvement in the global environment appears unlikely.
SK Hynix and Samsung are both set to issue third-quarter earnings reports on October 28 and 29, respectively. Market participants are watching these releases closely, with forecasts projecting Samsung’s Q3 sales at 195 trillion won ($145 billion) and operating profit at 107 trillion won ($80 billion). Weaker-than-expected results could further pressure investor sentiment in the local tech sector.
US Inflation and Oil Volatility Add Downside
Additional downward momentum for Bitcoin followed a higher-than-expected increase in the United States Consumer Price Index (CPI). September CPI data showed a 3.7% annual rise, prompting markets to price in the possibility of further interest rate hikes from the Federal Reserve.
QCP Capital questioned whether the surprise CPI reading would trigger more rate increases or push policymakers to reconsider their stance amidst growing credit concerns.
High oil prices have been a key driver in recent CPI increases, but both WTI and Brent crude fell Thursday even as tensions in the Middle East persisted. Emergency stock releases from IEA members have also helped to curb price spikes, despite ongoing supply risks around the Strait of Hormuz.
Market data showed WTI crude trading below $95 per barrel, down 0.5%, while Brent crude fell 2.2% to $103.7 per barrel.
Speculation and Meme Token Activity
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