Bitcoin Slumps to Ten-Day Lows as Asia Stock Crash Spills Over
The price of Bitcoin (BTC) plummeted to ten-day lows at Tuesday's Wall Street open, reaching levels not seen since July 17. This downturn follows a significant sell-off in US stocks, triggered by an Asia-wide stock market reversal.
The KOSPI Index in South Korea closed the day down 10.8%, with semiconductor manufacturers SK Hynix and Kioxia Holdings experiencing losses of 14.8% and 18.3% respectively. In the US, the tech-heavy Nasdaq Composite Index was down just over 1% at the time of writing.
The semiconductor sector is under pressure due to concerns over the sustainability of capital expenditure, particularly from hyperscaler companies. Investors are questioning whether the underlying economics of AI infrastructure buildouts can justify their scale. The combined 2026 capex guidance from Alphabet, Microsoft, Amazon, and Meta is tracking toward $725-730 billion, with Wall Street projecting a potential increase to $900 billion in 2027.
Crypto markets saw elevated long liquidations, exceeding $510 million over 24 hours, according to CoinGlass. This came as the price of Bitcoin dipped below $63,000 for the first time since July 17.