Bitcoin Battles to Hold $63,000 as U.S. Chip Sell-Off Drives Pullback

Bitcoin and US equities are both sensitive to interest-rate expectations, liquidity and investor risk appetite, making their performance a closely watched gauge of market sentiment. Asian shares had rebounded on strength in semiconductor and AI-chip stocks, but the rally failed to carry into Wall Street, highlighting a divergence in momentum between regional markets and leaving risk assets vulnerable to renewed selling.

Bitcoin fell 3.5% in a single session to about $62,000, its lowest level in two weeks. US stocks opened weaker and then traded largely sideways instead of following the Asian rebound. Analysts warned that BTC could face additional downside pressure through August, citing the cryptocurrency’s historical seasonal performance and the possibility that broader bearish-cycle patterns will continue to weigh on prices.

Bitcoin has increasingly traded as part of the broader risk-asset complex, leaving it exposed when enthusiasm for AI and semiconductor shares reverses. The latest pressure reflects doubts about whether hyperscalers can earn adequate returns on vast infrastructure spending. Combined 2026 capital-expenditure guidance from Alphabet, Microsoft, Amazon and Meta is tracking toward $725 billion to $730 billion, sharpening scrutiny of valuations, financing needs and the sustainability of the AI investment cycle.

On July 28, South Korea’s KOSPI closed 10.8% lower as SK Hynix plunged 14.8%, while Japan’s Kioxia Holdings slid 18.3%. The rout reached Wall Street, where the Nasdaq Composite fell more than 1% and Micron Technology dropped over 10% at the open. Bitcoin then broke below $63,000 for the first time since July 17, marking a 10-day low. CoinGlass data showed more than $510 million of leveraged crypto long positions were liquidated over 24 hours.

Bitcoin, the cryptocurrency market’s bellwether, has shown a strong positive correlation with U.S. technology stocks and is widely viewed as a gauge of global risk appetite. The broader crypto market has recently come under pressure as retail investors took profits at elevated prices and valuation-driven selling hit U.S. technology shares. The pullback reflects concerns about richly valued tech stocks and signals that investors have grown more cautious about allocations to risk assets amid macroeconomic uncertainty.

As selling swept through U.S. equities, Bitcoin retreated about 1.5% from a three-week high and traded around $64,500. Shares of memory-chip giant Micron Technology have plunged more than 30% from their record high in June 2026, directly weighing on technology stocks and, in turn, Bitcoin. The sell-off, led by the major chip stock, was still constraining the near-term performance of global risk assets in mid-July 2026.

Bitcoin, the world’s leading cryptocurrency, is widely viewed as a barometer for risk assets. A recent escalation in geopolitical conflict has pushed oil prices higher, while stress in Japan’s bond market and the prospect of selling by Strategy have heightened investor concerns about a renewed global regulatory crackdown. Together, these headwinds have put Bitcoin at risk of retesting a key psychological threshold. Whether that support holds will be an important signal for the broader digital asset market.

Geopolitical risks weighed on risk assets after former US President Donald Trump warned in mid-July that the United States would forcibly operate the blocked Strait of Hormuz. Bitcoin briefly fell below $62,000 on July 15 before testing support at $60,000. The latest data, however, showed signs that panic selling was stabilizing on July 16 as sellers’ profit margins fell to zero. The market is now watching closely to see whether Bitcoin can hold the $60,000 level.

Bitcoin is testing the $62,000 level, which the market views as key support. Weakness in Asian technology stocks, coupled with the impact of Micron Technology’s earnings on semiconductor valuations and risk appetite, is amplifying volatility across cryptocurrencies and U.S. equities. Investors are watching for signs that capital continues to flow out of high-risk assets.

Bitcoin briefly slipped to about $62,000 and fluctuated around that level during U.S. trading on July 20. Micron Technology plunged 13% ahead of its earnings release, deepening the selloff in semiconductor stocks. More than $1 billion in cryptocurrency positions was liquidated over the previous 24 hours, with the concentrated unwinding of leveraged positions further magnifying price swings.

Bitcoin is known as a decentralized asset, but its recent trading has increasingly resembled that of a highly volatile technology stock. Its 30-day rolling correlation with the U.S. software ETF IGV rose to 0.73, while their volatility correlation reached a record 0.88. As investors sold technology giants including IBM, funds also flowed out of crypto, making the $63,000 support level a key gauge.

After U.S. stocks closed on Monday, bitcoin briefly fell to $63,465 early on Feb. 24, 2026, Taiwan time, before recovering to about $64,314. Ether touched a low of $1,813 and rebounded to $1,830. The Dow, S&P 500 and Nasdaq fell 1.66%, 1.04% and 1.13%, respectively, while IBM plunged 13%. The market remained in “extreme fear.”

Bitcoin and AI chips are both highly volatile risk assets, and shifts in capital allocation often link the two markets. Strategy, formerly MicroStrategy, has long bet its balance sheet on Bitcoin. The company and its co-founder Michael Saylor have become key gauges of institutional crypto exposure and financing risk.

Bitcoin fell as low as $61,400 on June 4, 2026, losing about 7% in 24 hours and 13% over the week. Saylor attributed the decline to capital rotating into AI. Broadcom shares plunged about 15% the same day after the company maintained, but did not raise, its forecast for more than $100 billion in fiscal 2027 AI chip revenue, dragging other chip stocks lower.