Bitcoin Slides Below $82,000 as Asian and U.S. Stocks Retreat
Bitcoin fell below $82,000 on Thursday, reversing a late-Wednesday jump to nearly $84,800, CoinDesk reported. The cryptocurrency dropped as much as 2.9% since midnight UTC, marking its largest slide in two weeks, and traded near $81,800 at one point. CoinDesk reporters Oliver Knight and Omkar Godbole attributed the market move to mixed earnings reports from Tesla and Meta Platforms, which revived doubts among investors about corporate spending on artificial intelligence.
Asian and U.S. Stock Markets Face Broad Sell-Offs
Equity markets across Asia and the United States suffered steep losses alongside the cryptocurrency pullback. Chinese stocks entered a bear market overnight, according to CoinDesk data. South Korea’s Kospi index lost 3.5%, Japan’s Nikkei 225 slipped 2.7%, and Hong Kong’s Hang Seng fell by more than 2%. In the United States, Nasdaq 100 futures dropped 1.32% and S&P 500 futures fell 0.66%. During early Thursday trading, the Nasdaq index declined 1.5%, mirroring the pre-market futures.
Altcoins and Crypto Stocks Post Sharper Losses
The broader digital asset market experienced deeper losses than bitcoin itself. Ether lost 2.6% to trade near $2,400, according to CoinDesk. The CoinDesk 80 index fell about 3.2%, while the narrower CoinDesk 5 declined 2.5% and the decentralized finance (DeFi) sector index slid 5.6%. Crypto-related stocks posted even sharper declines in early trading. Strategy dropped 5.6%, Circle fell 4.6%, MARA Holdings lost 4.2%, and Coinbase declined 4%. These declines occurred despite spot bitcoin ETFs taking in more than $1 billion in recent days, as reported by CoinDesk.
Oil Price Surge Complicates Federal Reserve Inflation Target
Energy markets added upward pressure on inflation as oil prices climbed nearly 3% amid renewed Middle East hostilities. Investing.com reported that Brent crude rose as high as $111.05 a barrel earlier in the week, hitting a five-month high following attacks on Saudi Arabian infrastructure. Bitcoin previously dipped below $82,000 on Tuesday after retreating from levels above $85,000 earlier in October. Higher fuel costs complicate the Federal Reserve’s path toward its 2% inflation target. Consumer prices rose 3.7% year over year in September, with core inflation at 2.6%, both exceeding economists’ expectations. Gasoline prices jumped 9.1% during the month, driving more than half of the headline price increase.
Interest Rate Expectations Ahead of the October Fed Meeting
The Federal Reserve is scheduled to meet on October 27-28 to evaluate monetary policy. Investing.com cited FedWatch data showing an 18% probability of a rate increase at the upcoming meeting and a 75% probability of a rate hike in December. Higher interest rates typically weigh on risk-sensitive assets like cryptocurrencies, which gained support in the past from expectations of easier monetary policy.
How Much Did Bitcoin Drop During the Thursday Sell-Off?
- How much did bitcoin drop during the Thursday sell-off?
- Bitcoin fell below $82,000, sliding as much as 2.9% since midnight UTC to trade near $81,800 at one point, according to CoinDesk.
- What economic data preceded the Federal Reserve meeting?
- Consumer prices rose 3.7% year over year in September, and core inflation rose 2.6%, both coming in slightly above economists’ expectations as gasoline prices jumped 9.1%.
- What were the peak oil prices reported earlier in the week?
- Investing.com reported that Brent crude rose as high as $111.05 a barrel on Tuesday, reaching a five-month high following attacks on Saudi Arabian infrastructure.
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