Tom Lee: South Korea's chip stock selloff offers crypto chance but rates must ease
Tom Lee says Korea's chip stock drop signals crypto buying opportunity, but rising rates could challenge his thesis.
Bitcoin slid below $80,000 after US wholesale inflation ran hot, with leveraged liquidations and continued ETF outflows adding to the selling pressure.
Bitcoin’s slide beneath $80,000 looks like the next stage of the selling pressure that has built up over the week, with an unexpectedly hot inflation reading on October 15 giving traders fresh cause to sell.
US wholesale inflation ran much hotter than anticipated on October 15, a day after the consumer inflation report disappointed. That has deepened fears that the Federal Reserve could raise interest rates again.
Leveraged traders forced to unwind their positions are magnifying the selloff. The broader stock market, technology shares in particular, is under strain as well.
bitcoin:native is sitting on support.
However, underneath it a large cluster of long liquidations will be triggered. Another cluster sits around $75k.
Overhead, shorts liquidations have piled up above $85k all week. The lower clusters currently appear more fragile than those…— glassnode (@glassnode), October 15, 2026
The US Producer Price Index (PPI), out at 8:30 a.m. New York time on October 15, posted its largest monthly increase since March 2022.
Energy played a leading role in the jump, with wholesale gasoline prices climbing 20.3% in September.
Investors pay attention to this number because higher production costs can eventually spill into consumer prices.
For markets, this means interest rates could stay elevated or keep climbing.
The CPI release a day earlier set off the latest macroeconomic shock; the PPI data amplified it, piling more pressure on an already softening bitcoin market.
US spot bitcoin ETFs have been losing money throughout this stretch.
The data point to a weakness that has persisted over several days:
Even before the latest inflation surprise, institutional demand was draining from the market.
As money exits bitcoin funds, the steady buying pressure that would otherwise absorb selling from existing holders becomes thinner.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Tom Lee says Korea's chip stock drop signals crypto buying opportunity, but rising rates could challenge his thesis.
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