Bitcoin keeps up pressure on $84K as US stocks skirt Korea tech sell-off
Bitcoin price action preserved overnight gains as US stocks quickly rebounded after opening lower on the back of Korea’s tech-stock rout.
Bitcoin maintained its pressure on the $84,000 mark as US stocks quickly rebounded after opening lower due to South Korea's tech-stock decline. At the start of the US trading session, Bitcoin (BTC) was trading near $83,800, preserving most of its overnight gains. Equities initially dropped after futures fell during Asia trading hours, with Korea's KOSPI Composite Index falling 7.4% over two days.
Semiconductor losses were also significant due to concerns over AI expenditures and competition from China. Both the S&P 500 and Nasdaq Composite indices made early gains, though they were down less than 0.5% at the time of writing. Damien Boey, a portfolio strategist at Wilson Asset Management, explained that rising bond yields and increased bond volatility were affecting asset pricing across the board.
Bitcoin was experiencing resistance at $84,000 due to limited liquidity in exchange order books, according to CoinGlass data. Crypto trader Darkfost noted that US dollar strength and rising bond yields presented a double macro headwind for Bitcoin this month. Despite the inverse correlation between the US dollar index (DXY) and Bitcoin historically, this year's correlation has weakened.
Increased US dollar strength, coupled with higher bond yields and a lack of risk appetite, has made the market less favorable for Bitcoin, which is seen as a high-risk asset.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.