Bitcoin Falls Below $80,000 as Tech Stocks Slide and Liquidations Rise
Bitcoin fell below $80,000 during Thursday’s Asian trading session, ending a two-day recovery as renewed selling pressure in global technology stocks weighed on risk assets. The decline pushed major cryptocurrencies lower and forced traders betting on rising prices to close their positions.
The largest cryptocurrency dropped from above $81,700 to around $79,800, while Ether, XRP, Solana and other digital assets also recorded losses.
Samsung Results Shake Asian Markets
The latest downturn began in Asia after Samsung shares fell more than 5% following its semiconductor division's quarterly results, which failed to meet market expectations.
Samsung reported a 15-fold increase in operating profit at its chip division, reaching 106.5 trillion won for the three months through September. However, the figure came in below the expected 108.5 trillion won. The company also forecast capital expenditure of 84.4 trillion won, equivalent to approximately $63 billion, for the year, representing an increase of around 60%.
Despite the disappointment in its semiconductor business, Samsung's overall net income climbed 39%. The results nevertheless weighed on investor sentiment, with South Korea's Kospi index falling more than 2% and Nasdaq futures declining 1.4%.
The weakness spread to cryptocurrency markets, where Bitcoin and other major tokens faced renewed selling pressure.
Fed Outlook Adds to Market Uncertainty
The Federal Reserve also remained in focus after keeping its benchmark interest rate unchanged at 3.75% to 4% overnight. The decision was accompanied by a cautious message on inflation, reinforcing concerns that monetary policy could remain restrictive.
Fed Chair Kevin Warsh acknowledged progress in bringing inflation down but said price pressures were still too high. Some market expectations also point to the possibility of another rate increase in December.
Higher interest rates and elevated inflation-adjusted bond yields can make safer investments more attractive relative to speculative assets such as cryptocurrencies. This could limit the flow of capital into Bitcoin and other digital assets if investors become more cautious about market risks.
Investors have also been warned against making aggressive bets on the future direction of interest rates, reflecting continued uncertainty over the Federal Reserve's next moves.
Crypto Liquidations Reach $356 Million
Bitcoin's drop below $80,000 accelerated selling across cryptocurrency derivatives markets, triggering widespread liquidations among leveraged traders.
Data showed that approximately $356 million worth of crypto futures positions were liquidated over the previous 24 hours. Long positions accounted for $205 million of the total, indicating that traders expecting prices to rise suffered the largest combined losses.
Bitcoin futures recorded around $94 million in liquidations, while Ether futures accounted for another $72 million.
The figures highlight how quickly a market downturn can affect traders using leverage. When prices move against these positions, exchanges may automatically close them to cover potential losses, adding further selling pressure.
Bitcoin's next move will depend partly on whether broader financial markets stabilize and investors become more willing to take risks. Continued weakness in technology stocks, combined with uncertainty over US monetary policy, could keep pressure on cryptocurrency prices in the near term.