Bitcoin slides below $63,000 as chip-sector rout spreads globally

Bitcoin dropped 2% to $63,037 as a rout in semiconductor stocks spread from Wall Street to Asia, driving a broad risk-off shift across global markets.

"The chip selloff is forcing a reassessment of risk across the board, and crypto is not immune," said Nina Volkov, macro analyst at Edgen. "Gold breaking above $4,000 tells you this is a flight to safety, not a rotation."

The iShares Semiconductor ETF (SOXX) has fallen about 20% from its record high set less than one month ago, with Micron Technology, Advanced Micro Devices and Intel each losing more than 5% on Thursday. Japan's Nikkei 225 dropped 4% in Friday trading, while South Korea's KOSPI tumbled more than 6% after the Bank of Korea raised interest rates for the first time in over three years. Nasdaq 100 futures pointed to a 1.9% decline at the US open.

The simultaneous unwind in equities and crypto raises the risk of forced deleveraging, particularly in Asia where over 1.2 million retail margin accounts triggered calls last week, according to Goldman Sachs. Bitcoin's next support sits at $60,000, a level not tested since early May.

The selloff accelerated after Taiwan Semiconductor Manufacturing Co. raised its 2026 capital expenditure forecast to as much as $64 billion from a prior $56 billion range, stoking fears that AI infrastructure spending is ballooning faster than revenue can justify. The VanEck Semiconductor ETF (SMH) slumped nearly 4% on Thursday, and the declines extended into Friday's Asian session.

Bitcoin had rallied to near $65,000 earlier this week after a softer-than-expected US inflation print reduced the odds of a July rate hike to about 12% from 42%, according to CME FedWatch. But the move lacked conviction, with Wintermute noting that bitcoin failed twice at the $65,000 resistance level on weak spot volumes. US spot bitcoin ETFs recorded about $425 million in outflows on July 13, the day before the CPI release, and the Coinbase premium — a proxy for American institutional demand — remained negative.

Gold Breaks $4,000 as Geopolitical Risk Mounts

Gold climbed above $4,000 an ounce for the first time, extending its rally as the US launched a sixth consecutive day of strikes against Iran, targeting locations including the southern port of Sirik near the Strait of Hormuz. Brent crude rose above $85 a barrel, adding to inflationary pressure that complicates the Federal Reserve's policy path even as breakeven inflation rates have plunged below 2%, suggesting the market expects the next move to be a cut.

The Australian dollar, a proxy for China-linked risk, weakened after President Donald Trump declassified intelligence reports alleging Chinese interference in US elections, threatening to strain US-China relations ahead of a planned September meeting with President Xi Jinping. Any escalation in trade tensions could further weigh on risk assets, including bitcoin.

$60,000 Support in Focus

Bitcoin's 50-day simple moving average, a widely tracked gauge of near-term momentum, has given way, and open interest across derivatives exchanges has declined as traders unwind leveraged positions. Arthur Cheong, chief investment officer at DeFiance Capital, described the broader tech selloff as a "mid-cycle correction" driven by extreme positioning, adding that he expects markets to recover once the summer doldrums pass.

For bitcoin, the path of least resistance remains lower in the near term, with $60,000 serving as the next major support level. A break below that could open the door to $57,000, a level that held during the May selloff.

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