Bitcoin dropped below $63,000 on Friday, reversing gains from earlier softer inflation data, as a global semiconductor selloff triggered a broad risk-off move across asset classes. The cryptocurrency fell to $63,269 after the break, still down about 1.2% since midnight UTC, while ether lost 1.74% and total crypto market capitalization shed 1.86% to $2.16 trillion. The pressure was not crypto-specific—it mirrored a sharp defensive shift in equities, with Nasdaq 100 futures tumbling 1.91%, S&P 500 futures sliding 0.96%, Japan’s Nikkei dropping 4%, and a key semiconductor ETF down 3% premarket. Gold climbed back above $4,000 and the Dollar Index rose, signaling a classic flight to safety. Renewed Middle East tension around the Strait of Hormuz added to the unease.
The technical picture weakened as quickly as sentiment. Bitcoin’s rebound toward $65,000 failed to produce a higher high, leaving the downtrend channel from June intact. The price broke below its 50-day moving average, with support now eyed near $61,500—a level where buyers previously stepped in. Derivatives showed bearish pressure but no panic: the futures taker buy-sell ratio hit 0.94 (its lowest since June 2), total volume cooled 4% to $163 billion, and open interest eased to 747,000 BTC from 755,000 BTC. The RSI slid to 42.23, approaching oversold territory. Among altcoins, HYPE saw open interest rise nearly 2% as spot dropped 8%, confirming fresh short pressure, while privacy coins ZEC and DASH held gains.
The selloff underscores Bitcoin’s dual role as both a crypto-native asset and a macro-sensitive risk asset. Traders are now watching whether demand emerges near $61,500—a quick wick into support with strong buying would signal dip appetite; a grind lower on weak volume would be less convincing. The upcoming Federal Reserve meeting on July 28–29 will further test whether softer inflation can outweigh broader risk aversion. The move is a macro-led pressure test, not a structural breakdown, but follow-through in the next sessions will determine if this remains a contained pullback or deepens toward $59,000–$56,000.
