Tech Shock Sends Bitcoin Below $63,000
Bitcoin briefly fell below $63,000 due to a sharp correction in global technology stocks. The tech sector has been hit by concerns over AI financing and semiconductor production. China's development of its own lithography machines threatens ASML's dominance and the outlook for US, Japanese, and South Korean manufacturers.
Nvidia is also facing pressure as it discusses providing a $250 billion financial guarantee for a data center intended for OpenAI. This setup raises questions about circular financing and whether AI growth is driven by real needs or credit dependency.
The Federal Reserve meeting on July 28-29 adds to the uncertainty, with markets estimating a 35% chance of a 25 basis-point rate hike. A surprise hike would strengthen the dollar and make yield-bearing investments more attractive, potentially putting pressure on Bitcoin.