US Stock Rout Sends Bitcoin and Ethereum Tumbling

Bitcoin and Ether, the crypto market’s two largest risk assets, have become increasingly sensitive to shifts in technology stocks and inflation expectations. Disappointing reactions to earnings from Alphabet and Tesla renewed concern over the returns on heavy artificial-intelligence spending, while Brent crude’s move above $100 a barrel added to inflation worries and pressured demand for volatile assets.

On July 24, 2026, Bitcoin fell 1.66% over 24 hours and touched a low of $64,650, while Ether dropped 3.18% to as little as $1,859. CoinGlass reported $251 million in crypto liquidations, including $189 million in long positions, affecting 81,719 traders. The Fear & Greed Index compiled by alternative.me declined to 28 from 31, remaining in the “fear” range.

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.”

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 Ether have recently come under pressure from a selloff in U.S. technology stocks, hawkish signals from the Federal Reserve and outflows from spot Bitcoin ETFs. The growing correlation between crypto assets and risk-sensitive equities means volatility in U.S. stocks can more readily trigger leveraged liquidations in crypto, making it an important gauge of market liquidity.

As of the report’s publication, Bitcoin had pulled back to about $63,000, while Ether also weakened. Crypto liquidations across the market reached $558 million over the preceding 24 hours. Spot Bitcoin ETFs continued to record net outflows, while the Fear and Greed Index fell to 17, entering the “extreme fear” zone and signaling increased investor risk aversion.

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.