A pullback from this year’s top-performing AI and semiconductor stocks triggered a broad sell-off in Asian markets, with South Korea’s Kospi dropping 6%. Crypto assets followed the decline, with Bitcoin down more than 3% for the week.
Bitcoin slipped below $63,000 on Tuesday as investors reduced exposure to risk assets, particularly technology stocks that have driven much of this year’s gains.
The asset was trading near $62,840, down 1.1% over the past 24 hours and 3.5% on the week, according to CoinDesk data. After peaking around $65,076 on Monday, prices steadily declined throughout the session. The broader crypto market also weakened: Ether fell 0.9% to $1,719, XRP dropped 1.6% to $1.12, Solana declined 3.4% to $71, and Dogecoin lost 6.6% over seven days.
Tron was a rare outlier, gaining 1.3% on the day and 4.6% on the week, while Hyperliquid’s HYPE token posted a 4.8% weekly loss.
The pressure largely originated outside the crypto market. A rotation out of high-flying tech and chip stocks dragged global equities lower, with Asian markets falling more than 2% after recent record highs. The Kospi’s sharp drop reflected concerns that the rally in chipmakers had become overextended.
In the U.S., S&P 500 futures declined 0.8% and Nasdaq 100 futures fell 1.3%, following weakness in megacap technology stocks and rising bond yields that weighed on equities earlier in the week. Meanwhile, Brent crude slipped below $78 per barrel and gold prices also moved lower.
This shift signals a change in what is driving crypto markets. In recent weeks, Bitcoin tracked geopolitical developments tied to Iran. Now, with tensions easing and oil prices falling, crypto is increasingly moving in line with the AI-driven tech trade that has powered equities—now showing signs of fatigue.
The next key catalyst is Micron’s earnings report, which could indicate whether AI-related spending can continue to support the rally that has lifted its shares more than 300% this year.
Looking further ahead, Bitfire Group Holdings highlighted several macro events over the coming weeks: the U.S. jobs report on July 2, the consumer price index on July 14, and the start of second-quarter earnings season later in July. Together, these will provide insight into economic strength, inflation trends, and corporate outlooks, particularly from major AI firms.
Bitfire also flagged two crypto-specific concerns. The Coinbase premium has turned negative, suggesting weaker demand from U.S. institutional investors.
Additionally, Strategy’s STRC preferred stock has continued to decline, briefly falling below $84. While not signaling immediate risk, ongoing concerns about potential selling pressure from the firm are weighing on sentiment.
For Bitcoin, attention remains on the lower end of its recent trading range. A decisive break below the $59,000 to $60,000 support zone could mark the start of a deeper correction.
