Bitcoin is trading around $81,000 as concerns over artificial intelligence (AI) investment returns have led to a decline in U.S. stock markets, compounded by a surge in international oil prices that has dampened investor sentiment.
According to CoinMarketCap, Bitcoin was trading at $81,664.17, up 0.52% from the previous day as of 8 a.m. on October 19.
Bitcoin briefly dipped below the $80,000 mark following the release of higher-than-expected U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) figures, but it has since recovered slightly, remaining below $82,000.
Market analysts attribute the weakened investor sentiment to rising oil prices from the Middle East and instability in the U.S. stock market. Uncertainty surrounding the direction of interest rates ahead of the Federal Open Market Committee (FOMC) meeting scheduled for October 27-28 has also contributed to the cautious outlook.
Geopolitical tensions in the Middle East have raised concerns about oil supply disruptions, leading to a 3.51% increase in West Texas Intermediate (WTI) crude oil futures, which closed at $101.41 per barrel on October 16. Brent crude, the international benchmark, also rose by 3.72% to $109.86.
The surge in oil prices has heightened inflation fears, while skepticism about the profitability of investments in AI companies has weighed on U.S. stock markets. On the same day, the Dow Jones Industrial Average fell by 0.34%. The S&P 500 and the tech-heavy Nasdaq Composite dropped by 1.09% and 2.15%, respectively, as doubts grew about whether the substantial funds invested in AI infrastructure would translate into actual profits.
Investor sentiment in the virtual asset market has also declined. The CoinMarketCap 'Fear & Greed Index' stood at 49, indicating a 'neutral' sentiment. A score closer to 0 reflects extreme fear, while a score near 100 indicates extreme greed.
Major altcoins saw slight increases. Ethereum rose by 0.33% to $2,398.40, while Ripple (XRP) increased by 0.79% to $1.30. Solana was up 0.74% at $103.80, and Binance Coin (BNB) rose by 0.61% to $720.19.
Meanwhile, at Bithumb, Bitcoin was trading at 110,460,000 won ($82,556), up 0.74% from the previous day. The 'Kimchi Premium,' which indicates the extent to which domestic prices exceed international prices, was recorded at 1.2%.
* This article has been translated by AI.
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