Bitcoin fell below $63,000 on Tuesday, dragged down by a sharp selloff in technology stocks that rattled global risk assets. BTC traded around $62,840, a 1.1% decline over 24 hours and 3.5% lower on the week, after briefly touching $65,076 on Monday. The weakness extended across crypto markets: Ether shed 0.9% to $1,719, marking a 3.3% weekly loss; XRP dropped 1.6% to $1.12 (down 9% on the week); Solana lost 3.4% to $71; and Dogecoin slumped 6.6% over seven days. Tron bucked the trend, gaining 1.3% on the day.
The catalyst was a sharp rotation out of AI-linked tech and chip stocks. South Korea’s Kospi plunged over 6%, wiping out more than $426 billion in market value, while Japan’s Nikkei fell 2.8% a day after hitting an all-time high. US futures also slid: Nasdaq 100 futures lost 2.1%, S&P 500 futures declined 1.2%. Rising bond yields and a dip in crude oil below $78 per barrel added to the risk-off mood.
Geopolitical headlines added to the uncertainty. US Vice President Vance claimed progress on getting nuclear inspectors back into Iran, though Iranian officials quickly rejected the statement. The news gave market makers a trigger to amplify the selloff.
On-chain data revealed a significant $580 million in long liquidations within 24 hours, according to CoinGlass. Overleveraged traders were wiped out as positions cascaded, with Binance experiencing the heaviest selling inflows during the Asian session. Spot Bitcoin ETF outflows continued to bleed, removing a crucial source of buying support. The Coinbase premium turned negative, signaling weak US institutional demand. Strategy’s (MicroStrategy) STRC preferred stock dipped below $84, further dampening sentiment.
Ether printed a triple-bottom pattern near key support, though it remained under pressure. Several macro events loom: Micron earnings on Wednesday (a key test for AI spending), the Fed’s preferred inflation gauge (PCE) on Thursday, the US jobs report on July 2, and CPI on July 14. Analysts flagged the $59,000–$60,000 range as a critical floor for Bitcoin; a breach could signal a deeper correction. Still, some observers drew parallels to the rapid 2024 Nikkei flash crash that was quickly recovered, suggesting the current move may be contained.
