Key Takeaways
- • Bitcoin fell below $80,000 (trading near $79,800 from above $81,700) during Thursday's Asian session, reversing a two-day rebound, according to CoinDesk.
- • Futures liquidations totaled $356 million over 24 hours, with long positions accounting for $205 million; bitcoin futures saw $94 million and ether futures $72 million.
- • Samsung shares fell more than 5% after its semiconductor division's Q3 operating profit of 106.5 trillion won missed the 108.5 trillion won analyst average, triggering a tech-led risk-off move.
- • The Federal Reserve held its benchmark rate at 3.75%–4% in what was described as a hawkish hold, with Chair Kevin Warsh saying inflation pressures remain too high.
- • Elevated real yields from a hawkish Fed stance may limit capital flows into speculative assets such as crypto, per CoinDesk's analysis.
Summary
Bitcoin slipped below $80,000 on Thursday during the Asian trading session, according to CoinDesk, reversing a two-day rebound as a wave of risk aversion spread through global technology stocks. The largest cryptocurrency dropped from above $81,700 to around $79,800, dragging ether, XRP and solana lower and triggering liquidations among traders positioned for a rally.
The selloff originated in Asia, where Samsung shares fell more than 5% after its semiconductor division reported a fifteen-fold surge in operating profit to 106.5 trillion won for the three months through September, just short of the average analyst estimate of 108.5 trillion won. Samsung also said it expects capital expenditure of 84.4 trillion won, or about $63 billion, this year, up roughly 60%. Group-wide net income still rose 39%, but the miss was enough to unsettle markets. South Korea's Kospi fell more than 2%, and Nasdaq-linked futures declined 1.4%.
The Federal Reserve kept its benchmark rate unchanged in the 3.75%–4% range overnight, a stance described as a hawkish hold. Chair Kevin Warsh acknowledged progress on inflation but said price pressures remain too high, and ING still expects another rate increase in December following September's hike. BlackRock's Rick Rieder, Chief Investment Officer of Global Fixed Income, cautioned investors against making a "heroic directional call" on rates, saying real yields remain attractive and favoring a moderate duration posture. CoinDesk notes that a hawkish tone could keep real yields elevated and limit capital inflows into risky, speculative assets.
Derivatives markets amplified the decline. Futures positions worth $356 million were liquidated over the past 24 hours, according to market data, with long positions, or bets on rising prices, accounting for $205 million. Bitcoin futures accounted for $94 million of liquidations and ether futures for $72 million.
The selloff originated in Asia, where Samsung shares fell more than 5% after its semiconductor division reported a fifteen-fold surge in operating profit to 106.5 trillion won for the three months through September, just short of the average analyst estimate of 108.5 trillion won. Samsung also said it expects capital expenditure of 84.4 trillion won, or about $63 billion, this year, up roughly 60%. Group-wide net income still rose 39%, but the miss was enough to unsettle markets. South Korea's Kospi fell more than 2%, and Nasdaq-linked futures declined 1.4%.
The Federal Reserve kept its benchmark rate unchanged in the 3.75%–4% range overnight, a stance described as a hawkish hold. Chair Kevin Warsh acknowledged progress on inflation but said price pressures remain too high, and ING still expects another rate increase in December following September's hike. BlackRock's Rick Rieder, Chief Investment Officer of Global Fixed Income, cautioned investors against making a "heroic directional call" on rates, saying real yields remain attractive and favoring a moderate duration posture. CoinDesk notes that a hawkish tone could keep real yields elevated and limit capital inflows into risky, speculative assets.
Derivatives markets amplified the decline. Futures positions worth $356 million were liquidated over the past 24 hours, according to market data, with long positions, or bets on rising prices, accounting for $205 million. Bitcoin futures accounted for $94 million of liquidations and ether futures for $72 million.
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