After the Fed's Warsh avoided hints of a rate hike, the price of Bitcoin held steady around $82,000

Bitcoin held above $80,000 as South Korean tech stocks recovered after a sell-off and traders lowered expectations for a Fed rate hike.

Bitcoin (BTC) traded near $82,000 on Wall Street on Friday as crypto markets stabilized alongside a rebound in South Korean stocks.

Bitcoin/USD held most of its regained ground after jumping above $80,000 on Thursday, TradingView data showed.

BTC/USD four hour chart. Source: Cointelegraph/TradingView

Earlier declines followed a week-long sell-off in South Korean tech stocks, although Friday's Asian trading session brought some relief. The KOSPI composite index closed at 5,668, up 2 percent on the day but still down 8.3 percent on the week.

One-day chart of KOSPI composite index. Source: Cointelegraph/TradingView

U.S. stocks largely avoided the selloff in Asian markets, but were mixed on Friday, with the Nasdaq Composite down 0.5% and the S&P 500 up 0.5%.

Meanwhile, Federal Reserve Chairman Kevin Warsh helped investors by avoiding any hint of further rate hikes during talks with International Monetary Fund (IMF) Managing Director Kristalina Georgieva.

"I don't prejudge the meetings. I don't believe in saying now what I'm going to do in the meetings we have on balance this year," he said.

Markets seem to be taking the dovish tone as a negative signal about interest rate hikes. Data from CME Group's FedWatch tool showed a 25 basis point rate hike in October, down to 15 percent from 27 percent the previous day.

Federal Reserve target rate probabilities for the October FOMC meeting (show). Source: CME Group

Economist Robin Brooks suggested that stress in the AI sector, the main driver of Korea's sell-off, could be at the heart of the Fed chief's more dovish approach.

"The Fed gave no indication that the Fed is in a rush to hike, so the October meeting is now pretty much off the table for a hike," he wrote in a blog post.

Elsewhere, U.S. bond yields started to rise as stocks steadied, prompting speculation that the U.S. Treasury may eventually have to choose between taming bond sales and keeping stocks bullish.

The U.S. 10-year yield hit 5.07% on Friday and briefly tried to edge higher at 5.13%.

One-day chart of US 10-year bond yields. Source: Cointelegraph/TradingView

Market commentator The Kobeissi Letter noted that weakness in stocks has been the only source of corrections in bond yields since August. In an X analysis published on Thursday, Kubisi suggested that stocks may be in a paradoxical "bull bear market."

Without the U.S.-Iran war, stocks would have been much higher, he added, adding that persistent inflation would increase investor demand for asset exposure — even as the Federal Reserve began a new cycle of rate hikes.

Even as the S&P 500 reaches year 5 of its bull market, we believe a steep discount is currently in place in the stock. The World's Biggest and Fastest Companies" concludes.