A broad pullback from this year’s top-performing AI and semiconductor stocks triggered a sharp decline in Asian markets, with South Korea’s Kospi tumbling 6%. Crypto markets followed the downturn, leaving Bitcoin down more than 3% for the week.
Bitcoin slipped below $63,000 on Tuesday as investors moved away from risk assets, particularly technology stocks that have led global markets higher this year.
The cryptocurrency traded near $62,840, down 1.1% over the past 24 hours and 3.5% on the week, according to CoinDesk data. After reaching roughly $65,076 on Monday, prices steadily declined. 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 the past week.
Tron was a rare bright spot, rising 1.3% on the day and 4.6% over the week, while Hyperliquid’s HYPE token fell 4.8% during the same period.
The pressure largely came from outside the crypto sector. 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 sharp drop in the Kospi reflected growing concerns that the rally in chipmakers had become overextended.
In the U.S., S&P 500 futures declined 0.8% and Nasdaq 100 futures dropped 1.3%, following weakness in megacap tech stocks and rising bond yields that pushed equities lower earlier in the week. Meanwhile, Brent crude slipped below $78 per barrel and gold prices also moved lower.
This shift highlights a change in what is driving crypto markets. In recent weeks, Bitcoin had been reacting to geopolitical developments involving Iran. Now, with tensions easing and oil prices falling, crypto is increasingly tied to the AI-driven tech trade that has powered equities—now beginning to lose momentum.
The next key catalyst is Micron’s earnings report, which will offer insight into whether AI-related spending can continue supporting the rally that has driven its shares up more than 300% this year.
Looking ahead, Bitfire Group Holdings pointed to several major macro events in the coming weeks, including 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. These events will provide key signals on economic strength, inflation trends, and corporate outlooks—particularly from major AI companies.
Bitfire also highlighted two crypto-specific concerns. The Coinbase premium has turned negative, signaling weaker demand from U.S. institutional investors.
Additionally, Strategy’s STRC preferred stock has continued to decline, briefly dipping below $84. While not indicating immediate risk, concerns about potential selling pressure from the firm remain a drag on market sentiment.
For Bitcoin, attention remains on the lower end of its recent range. A clear break below the $59,000 to $60,000 support zone could signal the start of a deeper correction.
