Bitcoin climbed back above $83,000 on Tuesday, shaking off an early drop as weakness in Asian chip stocks and U.S. technology futures weighed on broader market sentiment. The largest cryptocurrency by market value fell to just under $81,000 before recovering, while Ether, XRP, Zcash, and Solana followed similar patterns.
South Korea's KOSPI index plunged more than 6% intraday, falling below 6,000 and hitting its lowest level since late July. Chipmakers led the decline, with Samsung Electronics and SK Hynix each falling roughly 8% as investors reacted to concerns over artificial intelligence valuations and increased competition from Chinese memory-chip producers. Hong Kong's Hang Seng slipped 0.4%, while Nasdaq futures fell 0.6%.
Oil prices remained elevated amid geopolitical tensions. WTI crude traded near $92.67 after recovering from below $90, supported by fresh attacks in Saudi Arabia and continued threats to shipping through the Strait of Hormuz. Brent crude hovered around $106 a barrel following a three-day rally.
Higher oil prices raise inflation concerns and strengthen the case for Federal Reserve rate increases, which typically pressures cryptocurrencies. The Dollar Index held near 102.50, its highest level since April of last year.
Crypto traders are focused on Thursday's U.S. consumer price index report as the next major catalyst. Market participants expect institutional investors to increase hedging through derivatives rather than reduce their underlying crypto holdings as they manage periods of heightened market uncertainty.
