Tech Stock Selloff Batters Crypto as Bitcoin Pulls Back

Heavy selling in US semiconductor and artificial intelligence chip stocks has sent turmoil across global financial markets and into cryptocurrencies, underscoring the close correlation between technology shares and digital assets. Meanwhile, the US House of Representatives held a hearing on the CLARITY Act in New York in an effort to establish a regulatory framework for stablecoins. However, negotiations over the timetable for further review and ethics provisions have reached an impasse, leaving policy uncertainty hanging over the market and drawing close attention from investors.

A collapse in US-listed AI chip stocks and a surge in oil prices triggered cascading crypto liquidations on July 18, 2026. Bitcoin fell below $64,000, forcing more than 85,000 investors into liquidation within 24 hours, with total liquidations exceeding $330 million. Long positions accounted for as much as 84% of the total. The Crypto Fear and Greed Index also plunged to 25, indicating that investor sentiment had entered “extreme fear.”

A cooling U.S. producer price index reported by the Bureau of Labor Statistics directly affects expectations for Federal Reserve rate cuts and global capital flows, making it a key driver of cryptocurrency market volatility. As the market leader, Bitcoin's price moves shape investor sentiment and serve as a barometer of risk appetite. The latest sharp swings, however, pushed sentiment into extreme fear, highlighting the fierce contest between bulls and bears in the current macroeconomic environment.

Buoyed by the softer PPI reading, Bitcoin briefly climbed to $65,600 on July 15 before quickly retreating to $64,600. Ether, meanwhile, showed resilience and outperformed the broader market. The sharp two-way swings triggered $309 million in cryptocurrency contract liquidations across the market over the past 24 hours, indicating that bullish confidence remains fragile and overall sentiment is still mired in extreme fear.

US spot Bitcoin ETFs had been seen as a key channel for institutional inflows, but recorded combined net outflows of $4.06 billion in June, signaling waning risk appetite among large investors. Delayed interest-rate cuts by major central banks and market sentiment mired in extreme fear have added funding and macroeconomic pressure on crypto assets.

Bitcoin and Ether both plunged on the morning of July 1, with Bitcoin falling below $58,200 and nearing a two-week low. The decline set off cascading liquidations of leveraged positions, with long liquidations across the market reaching $249 million over the previous 24 hours. Traders betting on a rebound bore the brunt of the losses, while short-term volatility risk rose sharply.

Bitcoin and Ether are the crypto market’s two largest assets, and their prices often drive moves in altcoins and derivatives positions. Exchanges forcibly close highly leveraged contracts when their margin becomes insufficient, and cascading liquidations can deepen a decline. Liquidation totals therefore offer a gauge of market risk and investor sentiment.

In the early hours of June 10, 2026, Taipei time, Bitcoin broke below the $63,000 support level and fell through $61,000, while Ether tested $1,600. CoinGlass data showed that more than 120,000 traders were liquidated over 24 hours, with total liquidations reaching $380 million and the largest single order on Binance totaling $8.05 million. By June 25, BTC had fallen below $60,000 again, with liquidations exceeding $650 million and nearly 140,000 traders affected.

Bitcoin and the broader cryptocurrency market rely heavily on leveraged capital. When prices fall sharply, exchanges forcibly close positions with insufficient margin, amplifying the decline. The latest selling came ahead of the U.S. Federal Reserve’s interest-rate decision as risk aversion intensified. Consecutive net outflows from spot Bitcoin ETFs and MicroStrategy’s first Bitcoin sale also undermined investor confidence.

Bitcoin fell below $67,000 early on June 3 and briefly touched $66,316, pulling Ether, Solana, Dogecoin and other major cryptocurrencies lower. Marketwide liquidations reached $1.78 billion over 24 hours, with long positions accounting for about 90%. The concentrated unwinding of leveraged bullish bets sent market anxiety sharply higher.

Market maker Wintermute said capital in U.S. equities was concentrated in AI stocks and had not flowed into Bitcoin, leaving crypto markets sharply decoupled from U.S. stocks at record highs. U.S. spot Bitcoin ETFs also posted their largest weekly outflow, while market sentiment fell to “extreme fear.” Long-term large holders, however, continued to quietly build positions through over-the-counter trades.

As of July 20, Bitcoin remained range-bound near $76,000. The lack of direction triggered successive closures of leveraged positions. About 87,000 traders were liquidated over the previous 24 hours, with total market liquidations exceeding $300 million. Most losses came from long positions, indicating that buying support remained weak after ETF funds pulled back.

Bitcoin has recently come under pressure from hawkish signals from the U.S. Federal Reserve, continued outflows from spot exchange-traded funds and geopolitical risks. The heavy concentration of leveraged long positions triggered cascading liquidations after the price broke below key support, further intensifying the market's “extreme fear” sentiment.

As of July 20, BTC had fallen as low as $72,582, a 14-day low, with about 152,000 traders liquidated for $755 million over 24 hours. Long positions accounted for more than 86% of the total. The market later plunged again to about $70,600, while the Fear and Greed Index dropped to 23 and ETH fell below $2,000.

Bitcoin has remained range-bound near recent lows amid outflows from US spot ETFs and the Federal Reserve’s higher-for-longer interest-rate policy. Risk appetite has cooled markedly, with the Fear and Greed Index falling to 29, indicating that investor sentiment has entered fear territory.

As of the latest report, Bitcoin had fallen below $74,000 and at one point traded weakly around $73,400. Crypto liquidations across the market reached $193 million over the past 24 hours, with short positions also squeezed. Markets will next focus on upcoming US CPI data and the Federal Reserve’s FOMC interest-rate decision.

Bitcoin and Ether are the crypto market’s leading assets, and sharp price declines can trigger forced liquidations on exchanges, amplifying selling pressure. Bitcoin’s slide toward $76,000 and Ether’s drop below $2,100 show that funds have yet to flow back into crypto in tandem with the Dow Jones Industrial Average’s record high.

As of July 19, preliminary data showed $53 million in liquidations across the market over four hours, with long positions accounting for 85%. Bitcoin later fell as low as $75,500, liquidating 64,000 traders for a combined $214 million. In the latest selloff, Bitcoin again dropped below $76,000 and Ether retreated to $2,000, while four-hour liquidations exceeded $134 million.

The correlation between U.S. equities and cryptocurrencies has deepened, with investors often withdrawing from volatile assets across both markets when risk sentiment weakens. Bitcoin's $77,000 level and Ether's $2,300 level are closely watched by traders. A break below them can trigger leveraged-position liquidations, intensifying short-term selling pressure and price volatility.

In the early hours of the 24th, U.S. stocks and cryptocurrencies faced a sharp simultaneous selloff. Bitcoin formally fell below $77,000, while Ether also dropped under $2,300. The plunge led to the liquidation of more than 100,000 derivatives traders across the crypto market, with total liquidations reaching $249 million as leveraged positions were rapidly unwound.