August Slump Looms as Bitcoin Falls Below $63K Amid AI Stocks Weakness

Bitcoin's price fell below $63,000 on Friday after a short-lived rebound in Asian semiconductor stocks lost momentum. The cryptocurrency's decline is adding pressure as it enters its historically weak August trading period.

The pullback came one day after Samsung and SK Hynix rallied roughly 25%, helping South Korea's KOSPI recover from a steep multiweek decline. However, this advance failed to carry into Friday, raising concerns that Thursday's gain was a temporary relief rally rather than the start of a sustained recovery.

Crypto assets and AI-related equities have increasingly traded as part of the same risk-sensitive market, both relying heavily on speculative capital and weakening when investors reduce exposure to high-valuation assets. Recent pressure on semiconductor stocks has centered on questions about whether AI infrastructure spending can continue at its current pace, and future demand for memory chips and computing hardware.

Bitcoin's median August return stands near negative 8%, placing $58,000 in focus as a possible support zone if selling continues. The Crypto Fear & Greed Index fell to 25, signaling 'Extreme Fear,' while market sentiment has deteriorated alongside prices.