CoinDesk
Bitcoin fell below $81,000 before rebounding above $84,000 and settling just above $83,000, while ether dropped as low as $2,400. South Korea’s equity benchmark plunged 5.5%, led by 7% and 10% declines in Samsung Electronics and SK Hynix. Crypto liquidations rose 284% to $813 million as traders positioned ahead of the U.S. CPI report and major bank earnings.
Why it matters
The equity selloff reflects growing doubts about the durability of the AI investment cycle. Broadcom’s CEO described current AI investing as “casino-like,” while reported advances by China’s CXMT in memory-chip technology raised concerns about stronger competition for established Korean chipmakers. South Korea’s benchmark now sits roughly 38% below its June all-time high.
Crypto is absorbing the same risk-off pressure, but derivatives data points more to forced deleveraging than fresh conviction. Twenty-four-hour futures volume jumped 66% to $212 billion, open interest fell 1.58% to $143.4 billion, and liquidations surged. Aggressive taker flow also shifted slightly toward sellers at 52% versus 48% for buyers.
Market impact
Bitcoin and ether futures open interest dropped at least 2% as prices remained flat to negative, while XRP, SOL and HYPE also saw leverage unwind. Traders continued buying Bitcoin puts, signaling demand for downside protection, although implied volatility indexes for Bitcoin and ether remained near year-to-date lows.
Selling spread through altcoins. SUI posted the most negative cumulative volume delta among major tokens, while STRK fell more than 17%, ZRO lost 14%, and NEAR dropped 11%. Autheo’s THEO plunged 92% after a suspected Base exploit in which an attacker allegedly minted 19 million tokens and exchanged them for 700 ETH, worth about $1.76 million. Stacks gained 11.4% as its Bitcoin-staking program expanded. The next major volatility test is the U.S. inflation report, with headline CPI forecast at 3.6% and core CPI at 2.5%.
Frequently asked questions
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Why did South Korean stocks fall 5.5%?
Concerns about the sustainability of AI investment and stronger Chinese memory-chip competition pressured Samsung Electronics and SK Hynix, leading the broader benchmark lower.
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What did crypto derivatives data reveal about the selloff?
Futures volume rose 66% to $212 billion, while open interest fell to $143.4 billion and liquidations rose 284% to $813 million. The combination points to leverage being unwound.
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How are traders positioning ahead of U.S. CPI?
Traders are buying Bitcoin put options, which gain value when Bitcoin falls. The positioning indicates demand for downside protection before the inflation report.
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What happened to Autheo’s THEO token?
THEO plunged 92% after a suspected exploit on Base. An attacker allegedly minted 19 million tokens and exchanged them for 700 ETH, worth about $1.76 million.
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Which major crypto assets showed the strongest selling pressure?
SUI recorded the most negative cumulative volume delta among major tokens. STRK fell more than 17%, ZRO lost 14%, and NEAR dropped 11%.
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