Bitcoin climbed back above $83,000 on Tuesday after an early drop below $81,000, recovering despite a sharp selloff in South Korean chip stocks and declining Nasdaq futures as traders prepared for Thursday’s U.S. inflation report.

The largest cryptocurrency by market capitalization regained ground after its initial slide, showing resilience as weakness across Asian equities and U.S. technology markets dampened appetite for riskier assets.

CoinDesk data showed Bitcoin falling to just under $81,000 at 00:50 UTC before moving back above $83,000. Ether also rebounded from a five-day low, while XRP recovered after touching its lowest price in three weeks. Zcash, Solana and several other major digital assets posted similar recoveries.

South Korean technology shares tumble

Bitcoin’s early decline coincided with a steep selloff in South Korea’s KOSPI index, which dropped more than 6% intraday, falling below 6,000 and reaching its lowest level since late July. The index remained down around 6% during morning trading.

Semiconductor stocks drove much of the decline. Samsung Electronics and SK Hynix each shed approximately 8%, extending their losing streaks to five sessions. Investors grew concerned about elevated artificial intelligence valuations and intensifying competition from Chinese memory-chip manufacturers.

The weakness spread to other markets. Hong Kong’s Hang Seng Index slipped 0.4%, while Nasdaq futures fell 0.6%, adding to Monday’s 0.78% decline in the technology-heavy index.

Energy prices and a strong dollar remain concerns

West Texas Intermediate crude traded near $92.67 per barrel, maintaining most of Monday’s rebound after prices had fallen below $90.

New attacks in Saudi Arabia and continued threats to shipping through the Strait of Hormuz kept concerns about potential energy supply disruptions elevated.

Brent crude remained close to $106 per barrel after a three-day rally. Traders weighed the risk of interrupted supplies against expectations that Russia could increase diesel exports.

Higher oil prices could intensify inflationary pressures and strengthen the case for additional Federal Reserve rate increases, potentially putting further pressure on cryptocurrencies.

The U.S. Dollar Index, which tracks the dollar against a basket of major currencies, held near 102.50, its highest level since April 2025.

Markets await U.S. inflation figures

Thursday’s U.S. consumer price index (CPI) report is now a key focus for cryptocurrency traders seeking clues about inflation and the outlook for interest rates.

Some analysts expect institutional investors to protect their portfolios with derivatives rather than substantially reduce their existing crypto positions.

Paul Howard, senior director at market-making firm Wincent, said institutions would likely increase hedging ahead of the inflation release while keeping their underlying investments largely intact.

He added that investors with a strong commitment to the asset class often maintain core holdings during uncertain periods and use derivatives to manage downside risks. This approach enables them to retain potential exposure to cryptocurrency returns while limiting the effects of short-term volatility.