Bitcoin Under Pressure, AI Stock Sell-Off Shakes Crypto
Bitcoin weakened around 1.5% to around US$63,842 in trading on Tuesday (July 28th). Bitcoin briefly fell as low as US$62,772 before paring losses, having previously touched an intraday high of US$64,999.
The pressure came from a major sell-off in semiconductor and artificial intelligence-related stocks. The South Korean stock index briefly fell around 11% as investors worried about high AI spending, competition from Chinese chipmakers, and the ability of such investments to generate returns.
The market is also cautious ahead of the Federal Reserve meeting on July 28-29th. The Fed is expected to keep interest rates unchanged, but the market is still pricing in about a one-third chance of a rate hike this week. Higher interest rates could put pressure on riskier assets like Bitcoin.
The decline in oil prices following hopes for US-Iran negotiations helped ease some inflation concerns. However, this positive sentiment has not been enough to offset pressure from the technology sector and uncertainty about Fed policy.
Institutional fund flows also remain mixed. US spot Bitcoin ETFs posted outflows of approximately US$465 million in the final two days of last week, but still recorded net inflows of US$33.8 million throughout the week, marking the third consecutive weekly increase.
Ethereum is trading around US$1,624.95, XRP US$1.059, Solana US$77.97, Cardano US$0.1588, and Dogecoin US$0.0709. Bitcoin is likely to remain under pressure as long as the tech selloff continues, while the Fed's decisions and statements will determine the future direction of the crypto market. (arl)
Source: Newsmaker.id
