Bitcoin Falls Below $81,000 as Asian Markets Tumble on Inflation Fears
Crypto and Asian stocks sell off together
Bitcoin dropped below $81,000 on Thursday morning, falling 3.6% in the past 24 hours to $80,764. Ether also slipped, dropping 6.5% to $2,353. The decline came as Asian stock markets fell sharply, reflecting a broad shift away from riskier assets.
Zcash saw the steepest drop among the top 10 cryptocurrencies, down 12.8% to $1,101. Solana fell 4.8%, and XRP dropped 4.7%.
Asian equity losses lead the way
South Korea's Kospi index fell 8% in morning trading, with chipmakers Samsung Electronics and SK Hynix both declining more than 9%. Japan's Nikkei 225 dropped 5.2%.
US inflation data sparks rate concerns
The sell-off followed overnight losses on Wall Street after US inflation data came in higher than expected. Core consumer price index rose to 3.7%, exceeding forecasts and raising concerns that the Federal Reserve may keep interest rates higher for longer.
Dominick John, an analyst at Zeus Research, told The Block that weakness in US tech stocks likely spilled into both equity and crypto markets, rather than one market directly causing the other.
Heavy liquidations signal leveraged positions unwound
Crypto liquidations reached $951.4 million over the past 24 hours, with $876.3 million coming from long positions, according to CoinGlass data. Rick Maeda, head of markets at Laevitas, said the scale of long liquidations suggested significant leverage had been flushed out.
"So the question is whether spot demand returns or the broader macro pressure keeps weighing on prices," Maeda said.
What remains unclear
It is not yet clear whether buying pressure will return to crypto markets or if macroeconomic concerns will continue to weigh on prices in the coming days.
Why this matters
The episode highlights how crypto markets remain closely tied to broader financial conditions. When investors grow worried about interest rates and economic growth, they tend to sell riskier assets across the board, including both stocks and cryptocurrencies.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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