Bitcoin slid 2.7% to around $63,200 on Tuesday as Asian markets sold off sharply and AI-related concerns rattled tech stocks.
The drop came after the U.S. stock market closed Monday. Bitcoin had been holding near $65,000 before the selloff. Ether, XRP, and Solana also fell.
South Korea’s Kospi index dropped more than 10% — its steepest single-day fall in recent months. The index is now down 25% from its mid-June peak. Samsung and SK Hynix each closed nearly 14% lower.
The trigger was news of rapid advances by Chinese memory chipmakers. China’s CXMT made a blockbuster market debut, and domestic production of advanced chip-making machines also showed progress. This unsettled investors who had bet heavily on South Korean chipmakers.
Nvidia fell around 5% Monday after its AI-related financing commitments passed $750 billion. That raised fresh questions about whether heavy AI infrastructure spending is sustainable.
Tesla and Alphabet had already flagged elevated AI costs in last week’s earnings. Investors are now waiting on results from Microsoft, Meta, Apple, and Amazon later this week.
Nasdaq 100 futures fell 1% in Asian trading Tuesday. S&P 500 futures slipped 0.3%. The Dow futures were roughly flat.
Japan’s Nikkei 225 dropped nearly 4% on Tuesday as the regional selloff spread.
Analysts at Bitfinex noted that Bitcoin does not always track equity moves. They said BTC tends to follow stocks when stress is macro or rate-driven, but can decouple when the cause is specific to individual sectors like tech earnings.
The Federal Reserve starts its two-day policy meeting Tuesday, with a decision due Wednesday. Markets widely expect rates to stay on hold. However, traders are pricing in around a 38% chance of a hike this week and an 80% probability of a September increase.
Core PCE and GDP data follow on Thursday, making the two-day window the most volatile of the week for rate-sensitive assets.
On the crypto side, the CLARITY Act has been pushed aside in the Senate to make room for a Russia sanctions bill. A vote is now unlikely before the August 8 recess, delaying regulatory clarity that many in the industry had expected to unlock institutional buying.
Oil prices also fell after the U.S. and Iran paused hostilities. President Trump said talks were ongoing and that a deal was possible.
Johnson & Johnson announced a proposed $5.5 billion settlement over ovarian talc litigation. The FAA also proposed inspections on hundreds of Boeing 737 MAX aircraft over incorrectly installed seats.
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