BTC Maintains Momentum Toward $84K While US Markets Dodge Korean Tech Downturn
BTC recovers alongside US equities during Wall Street's opening session as markets successfully avoid replicating Korea's tech sector decline while the US dollar index reaches an 18-month peak.
Bitcoin (BTC) maintained its pursuit of the $84,000 threshold during Tuesday's Wall Street opening session as US equity markets worked to distance themselves from South Korea's most recent technology sector selloff.
Key points:
- BTC moved toward the $84,000 mark again as US trading commenced on Tuesday, maintaining approximately 2% in gains.
- American equities successfully sidestepped a mirror sell-off following Korea's KOSPI index closing the session down 5.4%.
- CryptoQuant analysis highlighted rising US dollar power presenting challenges to BTC price advancement as DXY reached its strongest point in 18 months.
S&P 500, Nasdaq shake off KOSPI decline
TradingView data revealed BTC/USD climbing back toward approximately $83,800 as the US trading session kicked off, holding onto a substantial portion of its gains accumulated overnight.
Equity markets launched the day with declines after futures dropped throughout Asian trading hours following the KOSPI Composite Index in Korea shedding 7.4% across a two-day period. Semiconductor stocks spearheaded the downturn amid escalating concerns regarding AI spending and competitive pressure from China.
The S&P 500 index alongside the technology-focused Nasdaq Composite index both posted early advances to momentarily achieve positive territory for the day, though both indicators remained down by less than 0.5% as of the latest update.
"The most important development has been not just bond yields going up, but the volatility for bonds... and that's starting to work its way out through asset pricing across the board," Damien Boey, portfolio strategist at Wilson Asset Management in Sydney, Australia, told Reuters. He said:
"It's a very uncomfortable situation on many fronts... maybe AI capex just comes off the boil a little bit, and maybe a few players are casualties in that."
BTC continued trading within the confines of exchange order-book liquidity levels, which persisted in functioning as resistance barriers above the $84,000 threshold, according to data provided by CoinGlass.
Dollar strength takes center stage as DXY reaches 18-month peak
BTC bulls find themselves confronting a dual macro headwind throughout this month, according to CryptoQuant contributor Darkfost in his market analysis released on Tuesday.
As bond yields hover near their strongest levels in almost a quarter century, the US dollar's strength has grown substantially. The US dollar index (DXY), which measures the dollar against a basket of US trading-partner currencies, has risen by 5.5% from Sept. 9 and touched 102.57 during the session, marking its strongest performance since April 2025.
Despite the historically inverse relationship between DXY and BTC weakening throughout this year, the analysis on the onchain analytics platform indicates crypto markets are experiencing headwinds from diminished risk appetite.
"Taken together, these factors constrain the liquidity available to markets and erode institutional confidence, leaving them reluctant to take on more risk." he wrote in the blog post, adding:
"The climate is therefore unfavorable for Bitcoin, which is perceived as a highly risky asset, while tech (NDX) and the S&P 500, more mature markets, continue to surge and absorb what little liquidity remains."