Bitcoin falls to $63,640 as tech selloff drags crypto lower
In brief
- Bitcoin traded $63,640 on Tuesday, down 0.9% daily and 3.3% weekly
- Tech and chip stock rotation sank Asian markets; South Korea's Kospi fell 6%
- Ether fell to $1,719; Solana dropped to $71; major cryptos declined in tandem
- Micron earnings Wednesday will test whether AI spending can sustain the rally
- Bitcoin near June range lows; $59,000–$60,000 is key support level
The tech rotation hits crypto
A rotation out of this year's best-performing technology and chip shares sank global equities, with Asian stocks falling more than 2% and South Korea's Kospi plunging more than 6%. US equity futures followed suit: S&P 500 futures fell 0.8% and Nasdaq 100 contracts dropped 1.3%.
Crypto didn't escape the downdraft. Ether fell 0.9% to $1,719 and is also down 3.3% on the week. Solana lost 3.4% to $71, while XRP dropped 1.6% to $1.12 for a 9% weekly loss. Dogecoin slid 6.6% over seven days. Tron was the rare gainer, up 1.3% on the day and 4.6% on the week.
What's driving the shift
The narrative around crypto has changed. "For weeks bitcoin moved on each twist of the Iran story. Now, with a peace roadmap in place and oil sliding, the dominant force is the same AI-driven tech trade that has carried equities to records, and crypto is falling as that trade wobbles." The comment captures the shift: geopolitical risk has faded, and the AI-spending rally is now the primary force moving both equities and digital assets.
The next test is memory chipmaker Micron's results on Wednesday, a read on whether AI spending can sustain the momentum. Beyond that, Bitfire Group Holdings flagged three macro catalysts in the next four weeks: the June US jobs report on July 2, the consumer price index on July 14, and the start of second-quarter corporate earnings in mid-to-late July.
Institutional demand softens
Signs of institutional weakness have emerged. The Coinbase premium has widened to the downside, indicating US institutional buying remains tepid. Strategy's STRC preferred stock has fallen further, briefly dipping below $84.
Bitcoin is back near the lower end of its June range, with the $59,000 to $60,000 floor as the key level to watch. Brent crude edged below $78 a barrel and gold retreated, signaling broader risk-off sentiment across commodities.
