S&P 500 and Nasdaq Overlook KOSPI Declines
According to TradingView, the $BTC/USD price approached $83,800 as the US trading session commenced, maintaining much of its overnight gains.
$BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Stocks opened lower as futures experienced declines during the Asian trading hours, following a 7.4% drop in South Korea’s KOSPI Composite Index over two days. The semiconductor sector was particularly hard hit, fueled by growing concerns over AI spending and competition from China.
Despite an initial downward trend, the S&P 500 and tech-heavy Nasdaq Composite indices rebounded to show brief gains, although both remained down by less than 0.5% as the writing progressed.
Nasdaq Composite Index one-day chart. Source: Cointelegraph/TradingView
Damien Boey, a portfolio strategist from Wilson Asset Management in Sydney, Australia, spoke with Reuters about the current market situation, stating that “the rise in bond yields is not the only concern; the volatility within the bond market is also significant, affecting asset pricing across various sectors.” He further commented:
“This is a challenging environment on multiple levels… perhaps AI capital expenditure will cool down a bit, leading to some casualties among certain players.”
Bitcoin has remained constrained around order-book liquidity on exchanges, with resistance consistently forming above the $84,000 mark, according to CoinGlass.
$BTC liquidation heatmap. Source: CoinGlass
Dollar Resilience Takes Center Stage as DXY Reaches 18-Month Peaks
Bitcoin advocates are grappling with multiple macroeconomic challenges this month, noted CryptoQuant contributor Darkfost in their Tuesday market commentary.
Bond yields are hovering near their highest levels in almost 25 years, contributing to a significant increase in US dollar strength. The US dollar index (DXY), which evaluates the dollar against a range of currencies from US trade partners, surged by 5.5% since September 9, hitting 102.57 today, marking its highest point since April 2025.
US dollar index (DXY) one-week chart. Source: Cointelegraph/TradingView
This year has seen a diminished inverse relationship between the DXY and $BTC, with insights from an onchain analytics platform indicating a lack of risk appetite affecting the crypto markets.
“These factors combined limit the available liquidity in the markets and diminish institutional confidence, resulting in reluctance to take on additional risk,” he elaborated in the blog, concluding:
“Thus, the environment is not conducive for Bitcoin, perceived as a high-risk asset, while more established markets like tech (NDX) and the S&P 500 continue to thrive and absorb the scant liquidity available.”