Bitcoin slipped below $80,000 during Thursday’s Asian trading hours as disappointing technology-sector results and the Federal Reserve’s hawkish stance sparked a broader sell-off in risk assets. The decline erased the cryptocurrency’s two-day recovery and contributed to $356 million in liquidations across crypto futures markets within 24 hours.
BTC retreated from above $81,700 to roughly $79,800, pulling other digital assets lower as traders who had anticipated further gains were forced to close their positions.
Technology Sector Sell-Off Weighs on Crypto Markets
Pressure intensified after U.S. markets closed Wednesday, following Alphabet’s release of third-quarter results that fell short of analysts’ forecasts for both revenue and operating income.
The company reported $127.58 billion in revenue, compared with expectations of $127.93 billion. Operating income totaled $40.58 billion, missing the projected $43.16 billion. Earnings per share also declined to $2.12 from $2.87 in the same period a year earlier.
Google Services generated $96.30 billion in revenue, below the $98.40 billion analysts had anticipated. Revenue from Google Search reached $63.35 billion, compared with the $64.85 billion forecast.
Google Cloud delivered a stronger performance, posting $30.71 billion in revenue against expectations of $29.10 billion. Nevertheless, Alphabet shares fell 10% in premarket trading on Thursday as investors reacted to the broader earnings shortfall.
The negative sentiment carried into Asian markets, where Samsung shares dropped more than 5% after its semiconductor business failed to meet elevated market expectations.
Samsung’s semiconductor division recorded a 15-fold increase in operating profit to 106.5 trillion won for the three months through September. However, the result remained slightly below the average analyst estimate of 108.5 trillion won.
The company also forecast capital spending of 84.4 trillion won, or approximately $63 billion, for the year, marking an increase of around 60%.
Despite a 39% rise in group-wide net income, the results unsettled investors. South Korea’s Kospi index declined more than 2%, while Nasdaq futures lost 1.4%.
The weakness in technology stocks subsequently spread across cryptocurrency markets. Bitcoin, Ether, XRP, Solana and other digital assets came under selling pressure as investors reduced their exposure to risk-sensitive investments.
Hawkish Fed Stance Keeps Investors Cautious
The Federal Reserve maintained its benchmark interest rate at 3.75%–4% overnight, delivering a decision widely viewed as a hawkish hold.
Fed Chair Kevin Warsh said inflation had made progress toward cooling but emphasized that price pressures remained too high. ING continued to project another rate increase in December, following the September hike.
Rick Rieder, BlackRock’s chief investment officer of global fixed income and head of its global allocation investment team, also cautioned against making an aggressive prediction about the direction of interest rates.
“Real yields remain attractive, and there’s considerable income available across high-quality fixed-income markets,” Rieder said.
He explained that BlackRock remains inclined toward a moderate duration position, allowing investors to capture available income while taking a patient approach as economic conditions continue to diverge.
For crypto investors, the concern is that a hawkish monetary policy outlook could keep inflation-adjusted bond yields high. This could make conventional fixed-income assets more attractive and reduce the capital available for speculative investments, including cryptocurrencies.
Crypto Liquidations Climb to $356 Million
Bitcoin’s move below $80,000 accelerated liquidations across cryptocurrency derivatives markets, adding pressure to an already weakening market.
Data showed that approximately $356 million in crypto futures positions were liquidated over 24 hours. Bullish bets accounted for $205 million, as traders positioned for rising prices were caught off guard by the downturn.
Bitcoin futures recorded $94 million in liquidations, while Ether futures accounted for another $72 million.
The latest figures underscore the vulnerability of leveraged crypto positions when market sentiment deteriorates rapidly. With technology stocks under pressure and the Federal Reserve maintaining a hawkish outlook, Bitcoin’s latest decline has renewed concerns about the strength of its recovery and the near-term direction of the wider crypto market.
