Bitcoin slips to $63,000 as chipmaker selloff drags risk assets lower
In brief
- Bitcoin dropped 1.7% in 24 hours to $63,000, erasing weekly gains
- Chipmakers under pressure over AI spending returns; Nasdaq 100 futures fell 1.8%
- Ether held firmer at $1,836, up 2.4% on the week; Hyperliquid led losses at 8%
The chip rout spreads
A deepening selloff in chipmakers dragged risk assets lower, pulling crypto down alongside equities. Nasdaq 100 futures dropped 1.8% and S&P 500 contracts fell 0.9%, while a semiconductor ETF slid 3% in premarket trading. The pain isn't confined to US markets. Taiwanese stocks fell into a technical correction and Asia's main benchmark hit a two-month low. Europe held up better on lower tech exposure.
Within crypto itself, losses varied. Ether held better at $1,836, still up 2.4% over seven days. Hyperliquid led the losses at 8% on the day and 12% on the week.
The AI spending question
Chipmakers are under scrutiny over whether the hundreds of billions that AI hyperscalers are spending will produce the returns to justify their valuations
The selloff reflects a deeper concern about capital allocation. TSMC's results this week did not settle the question of whether AI spending will justify chipmaker valuations. Investors are questioning whether the scale of spending by hyperscalers will generate sufficient returns. That doubt ripples across risk assets, including crypto.
Bitcoin's week has been a study in macro crosscurrents. This week's soft inflation print gave bitcoin a lift toward $65,000, but the chip selloff pulled in the opposite direction. The Federal Reserve meets July 28 and 29, making near-term rate expectations a key driver for both equities and digital assets.
