Bitcoin Falls to 10-Day Low as Asia Semiconductor Rout Hits US Stocks
Key Takeaways
- •South Korea’s KOSPI Index closed down 10.8%, with chipmaker SK Hynix falling 14.8% and Japan’s Kioxia Holdings dropping 18.3%.
- •The US Nasdaq Composite was down just over 1% as semiconductor stocks came under pressure, with Micron Technologies hitting its lowest level since May 22.
- •Bitcoin fell below $63,000 for the first time since July 17 and reached a 10-day low at the Wall Street open.
- •CoinGlass data showed more than $510 million in crypto long liquidations over 24 hours.
- •Investors are questioning the sustainability of large AI infrastructure spending, with combined 2026 capex guidance from Alphabet, Microsoft, Amazon, and Meta tracking toward $725–730 billion.
Bitcoin (BTC) fell to a 10-day low at Tuesday’s Wall Street open as its price action tracked a US stock sell-off.
Key points:
- Bitcoin price action reacted to contagion from an Asia stock sell-off as it spread to US markets.
- Chipmakers were at the center of the reversal, with South Korea’s KOSPI Index closing down 10.8%.
- Crypto long liquidations exceeded $500 million in 24 hours.
Semiconductor giants drive a sharp Asia stock decline
Semiconductor-led losses in Asia spilled into US trading. South Korea’s KOSPI Index ended the session down 10.8% in a single day, pressured by a 14.8% drop in chipmaker SK Hynix. Japan’s memory manufacturer Kioxia Holdings fell 18.3% on the day.
In the US, the tech-heavy Nasdaq Composite Index was down just over 1% at the time of writing. Semiconductor manufacturer Micron Technologies, which dropped by more than 10% at the open, reversed part of a rebound and fell to its lowest levels since May 22.
Micron Technologies one-week chart. Source: Cointelegraph/TradingView
Semiconductor stocks are facing growing scrutiny over whether hyperscaler capital expenditure can remain sustainable. Investors are increasingly questioning whether the economics of AI infrastructure buildouts can justify their scale. Combined 2026 capex guidance from Alphabet, Microsoft, Amazon, and Meta is now tracking toward $725–730 billion, while Wall Street projects that figure could rise to $900 billion in 2027. Alphabet reported its first cash burn on record in the second quarter, at $5.9 billion, even as its cloud unit posted 82% growth.
Competitive pressure from Chinese startups is adding to financing concerns for US-based AI companies. Moonshot AI’s Kimi K3 open source model, first launched two weeks ago, was benchmarked competitively against top proprietary systems from Anthropic and OpenAI. That has intensified questions about the return profile assumed by the spending commitments of Western hyperscalers, given that similar capabilities may be replicated at a fraction of the cost.
Crypto liquidations top $500 million
The sell-off in the semiconductor and AI sector also hit Bitcoin, underscoring how closely crypto has been trading with broader risk assets during sharp equity moves. Data from TradingView showed BTC/USD dipping below $63,000 for the first time since July 17.
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
Crypto markets saw elevated long liquidations as the reversal accelerated, with CoinGlass data showing more than $510 million in liquidations over 24 hours.
Related: Markets eye Bank of Japan meeting on Friday as yen repeats 40-year US dollar lows
Cryptocurrency liquidation history (screenshot). Source: CoinGlass
On Monday, crypto analytics platform CoinAnk warned of the risk of a long liquidation “cascade” below $64,700.
“Extremely large long liquidity has accumulated below this level,” it said.
CoinAnk added that upside resistance appeared limited, with the area between $65,800 and $66,200 described as a “major short liquidation zone.”