Bitcoin drops to $81,400 as Asian chip stocks tumble, options traders seek downside protection

Bitcoin experienced downward price pressure, slipping to approximately $81,400 during the Asian trading session. This retracement occurred despite institutional interest remaining resilient, highlighted by the largest daily spot ETF inflow in nearly a month. The primary catalyst for the cautious sentiment appeared to be a steep 3.7% decline in South Korea's Kospi index, driven by mounting anxiety over artificial intelligence valuations. Consequently, crypto derivatives traders rushed to secure downside protection via options markets to hedge against further macro-driven volatility. The correlation between traditional tech equities and digital assets underscores ongoing risk-off sentiment in global financial markets. Market participants are closely monitoring equity performance for cues on whether Bitcoin can sustain its higher valuation range.