A shift away from this year’s top-performing AI and semiconductor stocks triggered a broad decline across Asian markets, with South Korea’s Kospi plunging 6%. Crypto markets followed the downturn, with Bitcoin falling more than 3% over the past week.
Bitcoin dropped below $63,000 on Tuesday as investors pulled back from risk assets, particularly technology stocks that have driven much of this year’s market gains.
The cryptocurrency was trading near $62,840, down 1.1% over the past 24 hours and 3.5% for the week, according to CoinDesk data. After reaching around $65,076 on Monday, prices steadily declined throughout the session. The sell-off extended across the crypto market: Ether slipped 0.9% to $1,719, XRP fell 1.6% to $1.12, Solana dropped 3.4% to $71, and Dogecoin lost 6.6% over the week.
Tron stood out as one of the few gainers, rising 1.3% on the day and 4.6% over the week, while Hyperliquid’s HYPE token declined 4.8% during the same period.
The pressure largely came from outside the crypto sector. A rotation out of high-flying technology and chip stocks dragged global equities lower, with Asian markets dropping more than 2% after recent record highs. South Korea’s Kospi saw particularly sharp losses amid concerns that the rally in chipmakers had become overstretched.
In the U.S., S&P 500 futures fell 0.8% and Nasdaq 100 futures declined 1.3%, following weakness in megacap tech stocks and rising bond yields that pushed equities lower on Monday. Meanwhile, Brent crude dipped below $78 per barrel and gold prices also retreated.
This marks a shift in the forces driving crypto markets. In recent weeks, Bitcoin’s movements were closely tied to geopolitical developments involving Iran. Now, with tensions easing and oil prices falling, crypto is increasingly influenced by the same AI-driven tech trade that has powered equities—and is now showing signs of weakness.
The next key event is Micron’s earnings report on Wednesday, which could offer insight into whether AI-related spending can continue supporting the rally that has driven the company’s stock up more than 300% this year.
Beyond that, Bitfire Group Holdings highlighted several upcoming macroeconomic catalysts over the next four weeks. These include the U.S. jobs report on July 2, which will gauge labor market strength; the consumer price index on July 14, a key measure of inflation; and the start of second-quarter earnings season in mid-to-late July, beginning with banks and extending to major AI firms whose guidance could shape global risk sentiment.
Bitfire also pointed to two crypto-specific warning signs. The Coinbase premium—often used as a proxy for U.S. institutional demand—has turned negative, suggesting weaker buying interest from American investors.
Additionally, Strategy’s STRC preferred stock has continued to decline, briefly dropping below $84. While Bitfire does not see immediate risk, concerns about potential selling pressure from Strategy remain a drag on market sentiment.
For Bitcoin, a critical level to watch remains the lower end of its recent range. A decisive break below the $59,000 to $60,000 support zone established earlier this month could signal a deeper phase of the current sell-off.
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