Bitcoin fell more than 3% on Tuesday, sliding to around $63,494, its lowest level since July 17, as a broad selloff in AI-linked technology shares spilled into crypto markets.

South Korea’s KOSPI index dropped more than 10% as investors sold shares in AI chipmakers. Samsung Electronics and SK Hynix both fell sharply amid concerns about AI infrastructure spending and rising competition from Chinese memory-chip makers. The pressure extended to digital assets, with Ethereum down about 4.43%, Solana lower by 4.41%, and XRP off 4.89% over the same period.

Fed Meeting Adds to Market Pressure

Markets are also focused on the Federal Reserve, whose two-day meeting ends Wednesday. Traders are currently pricing in a 38% chance of a surprise rate hike this week, while expectations for a September increase have climbed above 80%, according to CME FedWatch data.

Higher interest rates typically reduce the appeal of assets such as Bitcoin that do not generate yield, and the policy backdrop has added another layer of pressure at a time when crypto is already trading in step with swings in broader risk assets.

Bitcoin had already been struggling to sustain its recent rebound, with continued outflows from US-listed spot Bitcoin ETFs weighing on the price throughout the past week.

On Sunday, BTC held its 21-day and 50-day simple moving averages at $64,289 and $63,261. Crypto analyst Michaël Van de Poppe said holding those levels was “a strong signal for the markets to be betting on the long side,” while adding that the move still looked “a little fragile.” He said he would prefer to see a push to $66,000–$67,000 over the next one to three days to confirm a stronger bid.

#Bitcoin continues to hold above the crucial 21-Day and 50-Day MA's. This is a strong signal for the markets to be betting on the long side of this asset, however, it's still a little fragile. I'd much prefer to see a strong move to $66,000-67,000 over the next 1-3 days to see… pic.twitter.com/Je1XOOLljd — Michaël van de Poppe (@CryptoMichNL) July 27, 2026

Whale Accumulation Continues

On-chain data from Santiment showed that wallets holding between 10 and 10,000 BTC added 19,696 BTC over the past eight days. By contrast, retail demand has been easing, with sub-0.01 BTC wallets showing less urgency to buy dips. Santiment said the combination is “usually constructive,” as supply shifts toward stronger hands.

🐳 Bitcoin’s key stakeholders are accumulating. Wallets holding 10 to 10K BTC added 19,696 BTC in just the past 8 days. 🧊 Micro retail demand is cooling. Sub-0.01 BTC wallets are showing less dip-buying urgency, which often means late retail noise is fading. 📈 This… pic.twitter.com/Vr8XyLuNfK — Santiment Intelligence (@SantimentData) July 27, 2026

Analyst Ali Charts also noted that Bitcoin’s 3-day Bollinger Bands are beginning to squeeze, saying that periods of low volatility are often followed by a major price expansion.

Bitcoin $BTC 3-day Bollinger Bands are starting to squeeze. Periods of low volatility like this are often followed by a major price expansion. A big move could be just around the corner. pic.twitter.com/ytFoCBIedh — Ali Charts (@alicharts) July 27, 2026

Earlier Monday, BTC briefly approached $66,000 after news broke that the US and Iran had paused strikes. Both sides had held off attacks since Sunday, and Iran’s foreign ministry confirmed talks with Oman about reopening the Strait of Hormuz. The relief rally faded by Tuesday, underscoring how quickly headline-driven moves can reverse in a market already sensitive to macro and geopolitical developments.

QCP Capital said Bitcoin and Ethereum were still up roughly 11.6% and 24.6% month-to-date, respectively, despite the challenging macro backdrop.

The most recent Bitcoin price was $63,494, last recorded at 01:42 ET on July 28.