Bitcoin dropped 2% after U.S. market close, trading below $97,000 as broader equity markets signaled distress. South Korea's Kospi index plunged 10%, marking one of the worst days in the nation's stock market history. The selloff reflects widening contagion across asset classes.
Bitcoin's weakness comes amid heightened macroeconomic uncertainty. The 2% slide follows a period where BTC had been trading near all-time highs above $100,000. U.S. equity futures fell sharply during the session, with investors fleeing risk assets. The correlation between Bitcoin and traditional stocks has strengthened recently, pulling crypto lower alongside equities.
South Korea's stock market collapse signals regional economic stress. The Kospi's 10% plunge triggered circuit breakers and forced trading halts. Korean financial authorities implemented emergency measures to stabilize markets. The country's tech-heavy index includes major players like Samsung and SK Hynix, companies with deep exposure to global supply chain disruptions and semiconductor demand concerns.
The timing matters for crypto markets. Bitcoin typically acts as a risk-on asset during periods of market optimism but faces selling pressure when equities suffer sharp reversals. Current price action shows retail and institutional investors reducing positions simultaneously. On-chain data from Glassnode indicates uptick in exchange inflows, suggesting holders moving coins to exchanges ahead of potential further declines.
U.S. Treasury yields spiked during the selloff, with the 10-year climbing above 4.3%. Rising yields increase opportunity costs for holding non-yielding assets like Bitcoin. Federal Reserve policy expectations shifted as traders priced in slower rate-cut momentum.
Bitcoin's $97,000 level now represents key support. A break below would target $95,000 to $93,000. Technical analysts flagged the breakdown as breaking above the 200-day moving average, establishing fresh bearish momentum. Sentiment indicators flipped from greedy to fearful on the Crypto Fear and Greed Index.
The global selloff extends beyond equities and crypto. Commod