Bitcoin recovered from its Asian-session lows on Tuesday even as Nasdaq futures sank to their lowest level since May and risk aversion intensified across equity markets.

The leading cryptocurrency by market value traded around $63,500 at the time of writing, up from an Asian low of $63,065, according to CoinDesk data. Bitcoin was still down 0.3% since midnight UTC and nearly 3% over the past 24 hours.

E-mini futures tied to the Nasdaq slipped to 27,930 points, the lowest since May, and were down 1.2% for the week after peaking near 31,000 in June. On Monday, Nvidia (NVDA), the index heavyweight, fell nearly 5%. Earlier on Tuesday, South Korea’s Kospi index dropped 10%, while Japan’s Nikkei and other regional benchmarks posted smaller declines.

The selloff in U.S. equities has been concentrated in chipmakers and AI-linked names. Micron (MU), SanDisk (SNDK), Applied Materials (AMAT), Seagate Technology (STX), AMD (AMD) and Marvell (MRVL) were all sharply lower. The VanEck Semiconductor ETF (SMH) was down 4.4%, while the iShares Semiconductor ETF fell 5.6%.

By contrast, the broader market showed more resilience. The Nasdaq was down 1.3%, but Microsoft, Google, Apple and Amazon were modestly stronger. The Dow Jones Industrial Average was up 1.2%, helped by gains in Coca-Cola, Walmart and Home Depot. The S\u0026P 500 rose 0.4%.

Bitcoin’s recovery came as traders reduced bets that the Federal Reserve would surprise with a rate hike at its two-day policy meeting. Odds of a hike had reached nearly 40% at one point on Monday, according to CME FedWatch, but had eased to 28% on Tuesday. Oil prices also continued to fall, with WTI crude down 5% to $78.50 per barrel and Brent crude down 5% to $81.50.

Bitfinex analysts said the next key level for bitcoin is the short-term holder cost basis near $68,500, which represents the aggregate breakeven price for coins held by investors for less than 155 days. They said that level is the first major resistance likely to shape Bitcoin’s mid-timeframe trend.

“There is significant structural resistance at the $68,500 level, and as prices rise toward break-even, many investors will likely sell to exit at parity. If the price clears this barrier, volume analysis points to an ‘air pocket’ before the next major resistance at $84,000, similar to the one that led to rapid price expansion during the mid-May move from $67,000 to $80,000+,” the analysts said in an email.

Strategy executive chairman Michael Saylor also weighed in on Bitcoin in a post on X, saying the cryptocurrency’s biggest risk comes from within the network rather than from outside threats. Saylor said Bitcoin has already “won” mainstream acceptance and argued that changes to core consensus rules should be approached cautiously. He compared Bitcoin’s rules to a constitution that protects scarcity, security and property rights, and warned that proposals such as larger blocks, covenants or transaction censorship could weaken those principles. He said innovation should take place on higher layers built on top of Bitcoin.

Elsewhere in crypto, Grayscale Research said Hyperliquid’s native token HYPE (HYPE) may still be undervalued despite its rally this year. In a Tuesday note, Grayscale head of research Zach Pandl estimated Hyperliquid could generate about $1 billion in earnings in 2027, supported by a recovery in crypto trading volumes and a new stablecoin partnership. On that basis, he estimated HYPE trades at roughly 15x-18x forward earnings, below many publicly traded fintech peers. He cautioned that the outlook depends on continued revenue growth and controlled token supply, with risks including weaker network activity or faster-than-expected token unlocks. HYPE fell 3.4% over the past 24 hours, underperforming the broader CoinDesk 20 Index. The token is up 115% year to date but remains about 28% below its June record high.

The weakness in markets also hit crypto-related equities. Strategy (MSTR) fell 4.4%, Coinbase 3.5% and Circle (CRCL) 5.5%. Data center and mining names were hit harder, with Galaxy Digital (GLXY) down 11.7%, Hut 8 (HUT) down 11.8%, MARA Holdings (MARA) down 9%, IREN (IREN) down 10% and Cipher Mining (CIFR) down 11.1%. Bitcoin was down 2.8% to $63,100, while ether (ETH) fell 3.5% to $1,876.

The pressure extended to semiconductor stocks after South Korea’s Kospi plunged 10.8% overnight, driven by sharp declines in Samsung and SK Hynix. The Kospi is now down 34% from its peak one month ago. The Information reported yesterday that a Beijing-backed company has begun manufacturing deep ultraviolet (DUV) lithography machines, similar to those made by Netherlands-based ASML. ASML fell 5.8% on Monday and was down another 4.7% in pre-market trading.

Among the session’s corporate headlines, Seagate Technology (STX) rose 7% in after-hours trading after beating fiscal fourth-quarter earnings and guidance estimates. CEO Dave Mosley said results were being driven by robust cloud data center demand and disciplined execution, and he said the company sees momentum continuing in 2027.

Peer Western Digital (WDC) gained 5% after the report. Both companies have benefited from AI-related demand for mass storage, although they have also been caught in the recent reversal of the momentum trade. Even after recent declines, Seagate and Western Digital remain up about 150% year to date.

Visa said it is cutting about 2,600 jobs, or roughly 7% of its workforce, as CEO Ryan McInerney looks to streamline operations and redirect investment toward higher-growth areas, according to a Bloomberg report. The layoffs will mainly affect technology and product teams. In a memo to employees, McInerney said the cuts are intended to improve efficiency and allow Visa to reinvest in its “highest potential opportunities.”

The restructuring comes weeks after Visa launched the Visa Stablecoin Platform, an enterprise service aimed at helping banks, fintechs and crypto firms issue, store, transfer and redeem stablecoins. The company’s move highlights continued investment in blockchain-based payments even as it trims costs amid rising competition in the payments industry.

PayPal CEO Enrique Lores said on the company’s second-quarter earnings call that PayPal would consider a sale if it identified a path that would create superior value for shareholders than its current strategy. He declined to comment on market speculation around Stripe’s reported $60.50 per share offer. PayPal beat analyst estimates and Lores said the company is making progress on its restructuring plan, which includes major cost savings over the next three years. PYPL rose 4.15% to $58.40.

Morgan Stanley expanded its digital asset lineup with the launch of exchange-traded products tracking ether (ETH) and Solana (SOL), following the debut of its spot bitcoin (BTC) ETP earlier this year. The new Morgan Stanley Ethereum Trust (MSSE) and Morgan Stanley Solana Trust (MSOL) will trade on NYSE Arca and track the CoinDesk Ether Benchmark 4PM NY Settlement Rate and CoinDesk Solana Benchmark 4PM NY Settlement Rate. Each has a 0.14% expense ratio, which Morgan Stanley said is the lowest on the market. Both products also plan to stake part of their holdings, with staking rewards passed through to investors.

Morgan Stanley’s bitcoin ETP has drawn more than $381 million in assets under management through July 16. The firm’s ETF and ETP lineup now manages more than $14 billion across 22 products.

Ionic Digital (IOND), formed from the assets of now-jailed Alex Mashinsky’s bankrupt Celsius bitcoin mining operation, is going public today on Nasdaq through a direct listing with a reference price of $53. The company describes itself as a digital infrastructure firm serving AI and high-performance computing power needs, but it continues to mine bitcoin and holds a modest bitcoin treasury.

Galaxy Digital (GLXY) announced a development agreement and the acquisition of 500 acres in McGregor, Texas. The initial phase of the project is expected to reach 74 MW. CEO Mike Novogratz said the move reflects the company’s multi-campus strategy and that demand for compute is a structural shift. GLXY was down 3% pre-market as the AI momentum trade continued to weaken.

The latest market moves followed a broader rotation away from risk assets. Goldman's High Beta Momentum basket of stocks is now negative for 2026 after starting the year above 500, peaking at 850 in late June, and then retreating back to the 500 level over the past month.

Bitcoin’s recovery from Asia’s lows came as the market awaited the Federal Reserve’s policy decision and watched whether further weakness in AI-related stocks would continue to spill into crypto.