Bitcoin Falls Below $81,000 as Asian Stocks Suffer Sharp Losses
Bitcoin fell below $81,000 during Asian trading on Thursday as a sharp sell-off in regional stock markets added to pressure on cryptocurrencies. Ether and other major digital assets also declined, following losses on Wall Street after U.S. inflation data raised concerns about the Federal Reserve's interest rate outlook.
Bitcoin dropped 3.6% over 24 hours to $80,764 as of 11:50 p.m. ET on Wednesday. Ether fell 6.5% to $2,353, extending losses across the crypto market.
Among the 10 largest cryptocurrencies by market capitalization, Zcash recorded the steepest decline, falling 12.8% to $1,101. Solana dropped 4.8%, while XRP lost 4.7%.
The downturn coincided with heavy losses across Asian equity markets. South Korea's Kospi plunged 8% during morning trading, with Samsung Electronics and SK Hynix shares each falling more than 9%. Japan's Nikkei 225 also declined 5.2%, reflecting mounting pressure on regional stocks.
Inflation Concerns Weigh on Risk Assets
The simultaneous declines followed an overnight sell-off in U.S. stocks after the latest inflation figures showed core consumer prices rising more than expected. The data renewed concerns that the Federal Reserve could keep interest rates elevated for longer, putting pressure on risk-sensitive investments.
Cryptocurrencies and technology stocks have both faced pressure as investors reassess the outlook for borrowing costs. Higher interest rates can reduce demand for speculative assets by increasing the appeal of lower-risk investments and tightening financial conditions.
The declines across Asian equities and digital assets appear to reflect a broader retreat from risk rather than a direct link between the two markets. Weakness in U.S. technology stocks also contributed to the negative sentiment spreading into Thursday's trading session.
Nearly $1 Billion in Crypto Liquidations
The market downturn triggered a wave of forced closures among leveraged crypto traders. Liquidations reached $951.4 million over the previous 24 hours, with long positions accounting for $876.3 million, according to CoinGlass data.
The heavy concentration of long liquidations indicates that traders betting on rising prices faced the greatest losses as the market moved lower. Forced selling can add to downward pressure, particularly when prices fall quickly and leveraged positions are closed automatically.
With a substantial amount of bullish leverage removed from the market, attention now turns to whether spot buyers will return to support prices or whether persistent macroeconomic concerns will continue to weigh on digital assets.
Bitcoin's next move will depend in part on broader market sentiment, the outlook for U.S. interest rates and whether demand from buyers can absorb continued selling pressure.