TL;DR:
Bitcoin fell back below $63,000 on Friday as a global chip-sector selloff pulled risk assets lower and erased the lift from this week’s softer inflation data. BTC recovered near $63,269 after the break, still down about 1.2% since midnight UTC, while ether lost 1.74% and total crypto market capitalization dropped 1.86% to $2.16 trillion. The pressure was not crypto-specific. The AI trade is now shaking digital assets, with semiconductor weakness spreading from Asia to North America as investors question whether massive AI spending can justify current valuations.
The equity backdrop turned sharply defensive. Nasdaq 100 futures fell 1.91%, S&P 500 futures slipped 0.96%, Japan’s Nikkei dropped 4% and Asia’s main benchmark touched a two-month low. A semiconductor ETF slid 3% in premarket trading, while Taiwanese stocks entered a technical correction. Traditional havens gained, with the Dollar Index rising to 100.75 and gold climbing back above $4,000. The market moved into classic risk-off mode, with renewed Middle East tension adding another layer of pressure around the Strait of Hormuz.
The technical picture weakened as quickly as sentiment. Bitcoin’s rebound toward $65,000 failed to confirm a reversal, never produced a higher high and dropped back below its 50-day moving average. That leaves the downtrend channel from June intact, with support levels watched near $61,000 and $59,000 before the lower boundary around $56,000. The failed reversal keeps bulls on probation, especially before the Federal Reserve’s July 28 and 29 meeting, when traders will again test whether softer inflation can outweigh broader risk aversion.
Derivatives show bearish pressure, but not panic. The futures taker buy-sell ratio fell to 0.94, its lowest since June 2, while total volume cooled 4% to $163 billion and open interest stayed near $111 billion. Bitcoin open interest eased to 747,000 BTC from 755,000 BTC, suggesting limited forced unwinding. HYPE stood out with open interest rising nearly 2% as spot dropped 8%, confirming fresh short pressure.
The selloff remains controlled but uncomfortable, with negative CVD across many tokens, RSI at 42.23 near oversold territory, privacy coins ZEC and DASH holding gains, and the $62,500 BTC put becoming the dominant options bet. Ether still held near $1,836, up 2.4% over seven days, while the Altcoin Season indicator reset to 53/100, highlighting Bitcoin’s relative weakness versus several trading pairs on Friday too.
