The cryptocurrency market shed almost $24 billion on July 28 after Bitcoin slipped below the $64,000 mark. The plunge came alongside a sharp sell-off in global semiconductor stocks, dragging risk assets down worldwide.
Bitcoin hovered near $63,130, falling nearly 1% over the day, dipping briefly below $63,000 after reaching an intraday high above $63,700. Ethereum also dropped close to 1%, trading around $1,883, while XRP and Solana slid 1.3% and 1.77% respectively. Hyperliquid saw one of the steepest declines among major tokens, losing over 3% during the session.
The tech sector’s turbulence set the tone. South Korea’s Kospi index plummeted 10.8%, its biggest one-day slump since 2020. Samsung Electronics and SK Hynix plunged 13.4% and 14.7% respectively. The sell-off followed news that a Chinese state-backed manufacturer started producing domestic deep-ultraviolet lithography machines, a move perceived as a threat to established semiconductor equipment suppliers. Concerns about AI infrastructure spending added extra pressure, pushing investors toward safer assets.
Though crypto isn’t directly linked to semiconductor manufacturing, the risk-averse mood spread rapidly from tech stocks to digital currencies. The decline also coincided with a cooling of crypto demand. US spot Bitcoin ETFs suffered three straight sessions of net outflows after a week of inflows that had fueled Bitcoin’s recent rally. Between July 23 and 27, these ETFs saw nearly $477 million withdrawn, removing a vital support line for Bitcoin as it struggled to stay above $64,000.
Sentiment remained cautious ahead of the Federal Reserve’s July 29 policy announcement. While the market largely expects interest rates to stay put, traders are closely watching for hints on future moves, adding to the uneasy mood. This uncertainty, paired with the semiconductor sell-off and ETF outflows, painted a rough day for crypto investors.
This content is for informational purposes only and does not constitute financial advice.
