Bitcoin (BTC) slid to its lowest levels in more than three weeks on Thursday as cryptocurrency markets tracked a fresh wave of losses across South Korean stock markets, extending a stretch of renewed risk aversion.

At a glance:

• Bitcoin dropped to fresh local lows of $80,154 as selling pressure returned to South Korean equities.
• The KOSPI closed Thursday at 5,554 points, its weakest since early April, after a tech-led rout.
• Oil prices cooled, with Brent crude down more than 2% despite the sinking of a Singapore-registered tanker in the Strait of Hormuz, an act Singapore's maritime authority called “unjustifiable.”

Bitcoin price nears $80,000 as KOSPI plunges 7.5%

Data from TradingView showed BTC/USD hitting $80,154 on Bitstamp during Thursday's session — a level last seen on Sept. 20 and one that places the pair just above the $80,000 mark, a round-number level that traders routinely reference.

The weakness followed another bruising session for South Korea's Korea Composite Stock Price Index, or KOSPI, which finished the day 7.5% lower, taking its week-to-date losses to 15.5%.

As earlier in the week, technology heavyweights bore the brunt of the sell-off, with SK Hynix down 11% and Samsung Electronics closing 9.5% lower.

As previously reported by Cointelegraph, concerns over AI debt obligations, foreign capital outflows and competition from China contributed to the South Korean market rout. The KOSPI's 200-day moving average dropped to as low as 5,450 points — a level not seen since late July — and the index ended Thursday's session at 5,554 points, marking its lowest daily close since April 8.

The read-across to crypto reflects South Korea's status as one of the world's most active retail cryptocurrency trading markets, which keeps shifts in local risk sentiment on the radar of Bitcoin traders during episodes of global market stress.

Speaking to local media outlet The Korea Herald, Mirae Asset Securities analyst Kim Seok-hwan warned that global macro headwinds would add further friction going forward.

“Volatility is expected to persist in the near term,” he said. “As domestic supply-demand conditions deteriorate, the market has become more sensitive to external risks, while a near-term improvement in the global environment appears unlikely.”

Attention now turns to corporate earnings: SK Hynix and Samsung will release third-quarter results on Oct. 28 and Oct. 29, respectively, and outcomes that fall short of projections could add further downside volatility to investor sentiment toward the technology sector. Samsung is expected to confirm Q3 sales of 195 trillion won ($145 billion) and an operating profit of around 107 trillion won ($80 billion).

Oil falls despite Singapore tanker sinking

Downside pressure on Bitcoin was compounded by Wednesday's release of higher-than-expected US inflation data. The September print of the Consumer Price Index (CPI), a key inflation benchmark for financial markets, came in at 3.7% year-on-year, sparking a hawkish shift in market expectations regarding further interest-rate hikes by the Federal Reserve. Bitcoin generates no yield, a property that makes its appeal sensitive to the direction of interest rates.

“Does the beat force further hiking — or does credit stress prompt policy recalibration?” trading company QCP Capital asked alongside its macro analysis seen by Cointelegraph on Thursday.

Related: CryptoQuant's 3 charts keeping Bitcoin's 'Uptober' thesis valid

With high oil prices accounting for a significant portion of the uptick in CPI, both WTI and Brent crude fell on Thursday despite mounting tensions in the Middle East. A Singapore-registered oil tanker was sunk in the Strait of Hormuz on Wednesday, a move the Maritime and Port Authority of Singapore described as “unjustifiable.” The strait is one of the world's most important chokepoints for seaborne oil shipments.

Speaking to CNBC, Firas Bechwaty, head of business development at online trading platform ICM, saw little chance of Hormuz transit volumes returning to the levels seen before the US-Iran war began.

“At the same time, Saudi crude continues to reach international buyers through alternative routes, while accelerated emergency stock releases by IEA members provide an additional buffer, preventing a sharp rise in prices, even as tensions remain elevated,” he observed.

At the time of writing, WTI traded below $95 per barrel, down 0.5%, while Brent was 2.2% lower at $103.7 per barrel.

Source: Cointelegraph