Bitcoin falls below $63,000 as tech rout and rate fears hit crypto

Bitcoin fell 2.98% to $63,157 as a rout in Asian chipmakers and renewed US rate hike fears triggered broad risk-reduction across digital assets.

"Bitcoin's 3-day Bollinger Bands are tightening around the $65,000 level, suggesting a big move is just around the corner," Ali Martinez, a cryptocurrency analyst, said.

Over $670 million was liquidated across crypto markets in the past 24 hours, with $533 million in bullish long positions wiped out, Coinglass data shows. Bitcoin open interest fell nearly 2 percent during the same period. Ethereum dropped 3.67 percent to $1,873.27, while XRP fell 4.60 percent to $1.05 and Solana declined 4.09 percent to $73.19.

The selloff pushed the Crypto Fear & Greed Index into "fear" territory. The global cryptocurrency market capitalization stood at $2.23 trillion. Traders are now watching whether BTC can hold support above $62,000, with the next major resistance at $65,000.

The downturn coincided with weakness in traditional markets. The Dow Jones Industrial Average rallied 262.83 points to 52,210.08, while the tech-heavy Nasdaq Composite slid 0.18 percent. Hostilities between the US and Iran remained paused after nearly two weeks of military exchanges, with negotiations ongoing at technical and senior levels, according to US Ambassador to the UN Mike Waltz.

Crypto-related equities also came under pressure. Strategy Inc. fell more than 3 percent in pre-market trade, while Bitmine Immersion Technologies dropped over 4 percent, paring a 13 percent gain from the prior session.

Despite the selloff, SEC Chair Paul Atkins said in a CNBC interview that he is "optimistic" Congress will pass the Clarity Act, which would establish a single federal framework for digital assets. Tom Lee, Fundstrat managing partner and Bitmine chairman, said the legislation could "open up the floodgates" for institutional money into crypto.

This article is for informational purposes only and does not constitute investment advice.