Bitcoin Slides Below $63K as Asia Chip Selloff Spills Over to U.S.

Bitcoin slipped to ten-day lows at the opening of Wall Street on Tuesday, extending a broader risk-off move that followed a sharp sell-off in Asia-linked equities. As traders digested renewed pressure on global technology and AI supply chains, BTC trading weakened alongside US market futures before and during the start of US hours.

Crypto positioning also took a hit. Liquidation data indicates long positions were forced out quickly, with CoinGlass reporting more than $510 million wiped out over roughly 24 hours as the decline accelerated. Meanwhile, key benchmarks in semiconductor-heavy markets fell hard—underscoring how strongly crypto is still reacting to traditional market stress.

Key takeaways

• Bitcoin’s move to ten-day lows coincided with a US equities sell-off after steep declines in Asian markets.
• Semiconductor stocks led the reversal in Asia, with South Korea’s KOSPI closing down 10.8% in a day.
• Crypto derivatives liquidations for long positions surpassed $510 million over 24 hours, according to CoinGlass.
• BTC/USD dipped below $63,000 for the first time since July 17, setting up fresh levels traders will watch for follow-through.
• Analysts point to uncertainty around hyperscaler AI capex returns and intensifying competition from open-source AI.

Semiconductors trigger a wider risk-off swing

Tuesday’s pressure on Bitcoin was not isolated to crypto. Semiconductor losses spilled from Asia into US trading, amplifying the day’s bearish tone. In South Korea, the KOSPI Index finished down 10.8% in the session, with SK Hynix dropping 14.8%—a move that signals how quickly investors are repricing expectations for memory and chip-related demand.

The weakness wasn’t confined to one market. Japan’s Kioxia Holdings fell 18.3% on the day, highlighting a broader reset across parts of the semiconductor supply chain rather than a single company-specific issue.

In the US, the Nasdaq Composite was down more than 1% at the time of writing, as tech exposure dragged. Micron Technologies also reflected the intensity of the sell-off: the stock fell by over 10% at the open, then failed to sustain a rebound and reached its lowest levels since May 22.

AI infrastructure spending meets sharper scrutiny

A core theme behind the equity drawdown appears to be intensifying questions over the durability of hyperscaler capital expenditure. Investors are increasingly focused on whether the economics of large-scale AI infrastructure builds can justify the magnitude and pace of spending.

Coverage cited in the source notes that combined 2026 capex guidance from major hyperscalers—Alphabet, Microsoft, Amazon, and Meta—was tracking toward roughly $725–730 billion, with Wall Street projections suggesting it could rise toward $900 billion in 2027. Additional detail referenced alongside this is that Alphabet reported its first cash burn on record in the second quarter, totaling $5.9 billion, even as its cloud unit posted 82% growth.

For crypto traders, the implication is straightforward: if equities react to doubts about AI spending returns, high-beta assets like Bitcoin can face correlated selling pressure—especially when leverage is already elevated in crypto markets.

At the same time, the competitive narrative around AI is adding another layer of uncertainty. The source points to Moonshot AI’s Kimi K3 open-source model, launched two weeks prior to the report’s timeframe and benchmarked against leading proprietary systems from firms such as Anthropic and OpenAI. The argument being circulated is that if similar model capabilities can be achieved at lower cost, parts of the return assumptions for Western hyperscaler spending may be less certain.

Bitcoin breaks key levels as liquidations mount

Crypto didn’t escape the macro pressure. TradingView data referenced in the source shows BTC/USD dipping below $63,000 for the first time since July 17 as the day’s sell-off expanded into US hours.

As spot price weakness drew in leveraged participants, derivatives flows accelerated. CoinGlass liquidation data cited in the article indicates long liquidations cleared in excess of $510 million over 24 hours—an outcome consistent with sharp downside moves where stop-losses and margin calls cascade quickly.

On the risk side, the source includes commentary from CoinAnk warning of a potential long liquidation cascade below $64,700. CoinAnk noted that “extremely large long liquidity has accumulated below this level,” and added that upward movement may face less immediate resistance, with the $65,800 to $66,200 band described as a “major short liquidation zone.”

This framework matters for market participants because it ties price action to the mechanics of liquidation-driven volatility. When large clusters of orders sit near defined technical levels, the market can shift rapidly—not only because of new information, but because positioning unwinds.

What to watch next

Bitcoin’s next move will likely depend on whether the broader equity stress stabilizes or intensifies, especially as investors continue to reassess hyperscaler spending and AI infrastructure return assumptions. For traders and risk managers, the immediate focus should be on whether BTC can reclaim levels above recent breakdown points or whether liquidation dynamics extend further through the zones highlighted by CoinAnk and the broader long liquidations tracked by CoinGlass.