Bitcoin Slides Toward $81,000 as Nasdaq Selloff Fuels Risk Aversion

A replica Bitcoin coin is displayed at a cryptocurrency exchange in Seoul. Bitcoin fell more than 3% on Oct. 23 as a sharp Nasdaq selloff and escalating tensions in the Middle East weighed on risk appetite. (Yonhap) Bitcoin fell more than 3% over the past 24 hours, sliding toward the $81,000 mark as a sharp selloff in U.S. technology stocks and escalating geopolitical tensions in the Middle East weighed on investor appetite for risk assets. Growing doubts over returns on artificial intelligence (AI) investments contributed to the decline in the Nasdaq Composite, with the resulting risk-off sentiment spilling over into cryptocurrency markets. As of 8 a.m. on Oct. 23, Bitcoin was trading at $81,245 on global cryptocurrency data platform CoinMarketCap, down 3.76% from 24 hours earlier. The decline marked its steepest drop in more than a month. On South Korean exchange Bithumb, Bitcoin fell 0.56% over the same period to 108.98 million won, or approximately $82,417, remaining just above the 108 million won level. Other major cryptocurrencies also declined, with Ethereum down 4.12%, XRP falling 4.77% and Solana losing 3.90%. The downturn coincided with a sharp selloff in the technology-heavy Nasdaq Composite. On Oct. 22 (local time), the index dropped 694.00 points, or 2.60%, its steepest single-day decline since early June. Meta shares fell approximately 7% despite earnings that exceeded market expectations, amid concerns over the company’s AI-related spending and cash flow. Lorris Beziers, senior DeFi analyst at Tesseract Group, attributed the cryptocurrency selloff to risk aversion spreading from equity markets into digital assets. Rising oil prices amid heightened geopolitical tensions in the Middle East added to market pressure. December Brent crude futures settled at $113.17 per barrel, up 4% from the previous session and reaching their highest level since May. Reports that the United States and Israel were considering resuming military operations against Iran, alongside intensified attacks by Yemen’s Houthi rebels, contributed to increased demand for safe-haven U.S. Treasuries. The yield on the benchmark 10-year Treasury note fell 19.3 basis points to 4.952%, marking its largest daily decline in three years and seven months. Despite the short-term correction, some market participants remain optimistic about Bitcoin’s longer-term prospects. In a recent report, JPMorgan Asset Management projected an annualized return of 10% for Bitcoin over the next 10 to 15 years, compared with 7.5% for U.S. large-cap equities and 5.5% for gold. However, Bitcoin’s volatility, estimated at three times that of gold, remains a significant risk that could affect investors’ realized returns. Fund flows have also shown signs of renewed investor interest. U.S. spot Bitcoin exchange-traded funds (ETFs) attracted $1.1 billion in net inflows this week, reversing two consecutive weeks of net outflows. Pratik Kala, portfolio manager at Apollo Crypto, said Bitcoin had demonstrated notable resilience despite macroeconomic shocks and expressed optimism that its next major move would be upward. CoinMarketCap’s Fear and Greed Index stood at 48, indicating neutral sentiment, down sharply from 78, or greed, last month. Meanwhile, Cryprice’s index registered 68, indicating greed, highlighting differences in sentiment readings across data providers. The so-called Kimchi Premium, which refers to the price premium Bitcoin commands on South Korean exchanges compared with overseas markets, remained at around 1%. Investors are now looking to the Federal Open Market Committee (FOMC) meeting scheduled for Oct. 27–28 for fresh signals on the market’s direction.