Bitcoin rebounded above $83,000 on Tuesday even as South Korea's KOSPI index tumbled on a semiconductor selloff. Crypto liquidations topped $800 million, and negative Net Taker Volume raises doubts about Bitcoin's recovery.
Bitcoin rebounded above $83,000 on Tuesday despite a sharp Asian stock selloff. It recovered after briefly slipping below $81,000, while cryptocurrency liquidations exceeded $800 million.
South Korea's chip stocks drive the equity rout
South Korea's KOSPI plunged up to 7.4% before recovering some losses to close at 6,035.35. Samsung Electronics fell 7.39%, while SK Hynix declined 10.09%, a fifth consecutive session of losses for both.
The two memory-chip makers account for approximately half of the KOSPI's market capitalization, which leaves the index sensitive to the outlook for AI infrastructure spending. Foreign investors sold approximately 4.5 trillion won ($3.35 billion) of Korean equities during Tuesday's session.
Paradis Labs said recent comments from Broadcom CEO Hock Tan had intensified the selloff. Tan compared speculative AI investment to gambling, adding to concerns that the industry's capital commitments might not generate sufficient returns.
The weakness spread beyond Korea. The Philadelphia Semiconductor Index declined 2.7% on Monday, and Japan's Nikkei 225 fell 1.8% Tuesday.
$813 million liquidation wave hits leveraged traders
According to CoinGlass data, liquidations reached $812.9 million over 24 hours, affecting 170,209 traders. Bullish positions accounted for $686.72 million, or 84.5% of the total.
Bitcoin recorded the largest losses at $192.14 million, with long positions accounting for nearly 74% of the total. Ethereum followed with $180.5 million, while Solana saw $60.85 million.
Net Taker Volume turns negative again
CryptoQuant analyst JA Maartunn reported that Bitcoin's Net Taker Volume turned negative again, indicating that aggressive selling in derivatives markets outweighed buying activity.
The reading points to continued selling pressure even as Bitcoin recovers. Bitcoin's recovery could face another test if the equity selloff deepens or leveraged traders rebuild positions ahead of Wednesday's US inflation report.
Source: CryptoSlate
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