Bitcoin Dips Under $63,000 as Tech Weakness Spills Into Crypto Markets

A pullback in this year’s top-performing AI and semiconductor stocks sent shockwaves through global markets, dragging Asian equities sharply lower and spilling over into crypto. South Korea’s Kospi slumped 6%, while Bitcoin is now down more than 3% on the week.

Bitcoin dropped below $63,000 on Tuesday as investors retreated from risk assets, particularly the tech sector that has fueled much of this year’s rally.

The cryptocurrency traded 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 through the session. Losses extended across the broader market, with Ether slipping 0.9% to $1,719, XRP falling 1.6% to $1.12, Solana declining 3.4% to $71, and Dogecoin dropping 6.6% over the past seven days.

Tron stood out as a rare outperformer, rising 1.3% on the day and 4.6% for the week, while Hyperliquid’s HYPE token fell 4.8% over the same period.

The sell-off was driven largely by macro forces. A rotation out of high-flying chipmakers and AI stocks weighed on global equities, with Asian markets falling more than 2% after recent record highs. The steep drop in the Kospi highlighted growing concerns that the rally in semiconductor stocks may have overshot fundamentals.

In the U.S., S&P 500 futures declined 0.8% and Nasdaq 100 futures fell 1.3%, reflecting continued weakness in megacap tech alongside rising bond yields. Commodities also softened, with Brent crude slipping below $78 per barrel and gold edging lower.

The shift underscores a change in what is driving crypto markets. In recent weeks, Bitcoin had been reacting to geopolitical developments, particularly around Iran. With tensions easing and oil prices falling, crypto is now increasingly tied to the AI-driven equity trade—now showing signs of slowing.

Attention now turns to Micron’s earnings report, which is expected to provide a key read on whether AI spending can continue to sustain the rally that has pushed its shares up more than 300% this year.

Beyond that, Bitfire Group Holdings highlighted several key macro catalysts in the weeks ahead, 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 are likely to shape the broader risk outlook, particularly through signals from major AI companies.

The firm also pointed to two crypto-specific headwinds. The Coinbase premium has turned negative, suggesting muted demand from U.S. institutional investors.

Meanwhile, Strategy’s STRC preferred stock has extended its decline, briefly dipping below $84. While not signaling immediate stress, concerns about potential selling pressure continue to weigh on sentiment.

For Bitcoin, focus remains on the lower end of its recent trading range. A decisive break below the $59,000 to $60,000 support zone would signal that the current pullback is deepening into a broader correction.