Bitcoin Slips to $63,000 as Deepening Semiconductor Selloff Drags Down Risk Assets

Bitcoin fell to about $63,000 on Friday, marking a 1.7% decline over 24 hours and a 2.2% drop on the week. The pullback comes as a deepening selloff in global chipmakers drags broader risk assets lower, highlighting the persistent correlation between cryptocurrency markets and high-growth technology equities.

While Bitcoin struggled to maintain its footing, Ether held better at $1,836, remaining up 2.4% over a seven-day period. In contrast, the broader decentralized finance and altcoin markets faced steeper declines, with Hyperliquid leading the losses, shedding 8% on the day and 12% on the week.

The weakness in digital assets mirrored a sharp downturn in traditional equities. Nasdaq 100 futures dropped 1.8% and S&P 500 contracts fell 0.9%, driven largely by anxiety surrounding the semiconductor sector. A major semiconductor ETF slid 3% in premarket trading, sending shockwaves through global supply chains. Taiwanese stocks fell into a technical correction, while Asia’s main benchmark hit a two-month low. European markets held up better, insulated by their relatively lower tech exposure.

At the heart of the market’s unease is a fundamental question that has loomed over the technology sector all month: Will the hundreds of billions of dollars that AI hyperscalers are spending on infrastructure actually produce the financial returns necessary to justify their sky-high valuations? This week’s earnings release from Taiwan Semiconductor Manufacturing Co. did not settle the debate. TSMC’s results this week did not settle the valuation questions, leaving investors skeptical about the near-term monetization of artificial intelligence.

This tension has kept cryptocurrency markets locked in a familiar quarterly pattern, caught between macroeconomic optimism and equity-market risk aversion. Earlier in the week, a soft inflation print gave bitcoin a lift toward $65,000, sparking a classic macro trade as investors anticipated potential monetary easing. However, the subsequent chip selloff has pulled the market in the opposite direction, demonstrating how quickly systemic equity shocks can sap liquidity from the digital asset space.

All eyes now turn to the macroeconomic calendar. The Fed meets July 28 and 29, where policymakers are expected to discuss the trajectory of interest rates. Until then, crypto assets are likely to remain sensitive to both tech earnings and shifting liquidity conditions.