Key Takeaways
BTC declined more than 3% on Tuesday, touching approximately $63,494 — marking a 10-day low not seen since mid-July
Tech stocks tied to artificial intelligence experienced steep losses, with South Korea’s KOSPI plunging over 10%, creating ripple effects in digital assets
Market participants are assigning a 38% probability to an unexpected Federal Reserve rate increase this week, while September hike likelihood exceeds 80%
Technical expert Michaël Van de Poppe highlighted BTC maintaining crucial moving average support levels at $64,289 and $63,261
Large wallet addresses holding 10–10K BTC accumulated approximately 20,000 BTC over an 8-day span, per Santiment analytics
The leading cryptocurrency by market capitalization tumbled over 3% during Tuesday’s trading session, reaching $63,494 — representing its weakest performance in a week and a half. This decline coincided with widespread selling pressure across AI-focused technology equities that spread contagion into digital asset markets.
The KOSPI benchmark in South Korea experienced a dramatic plunge exceeding 10% as market participants liquidated positions in semiconductor companies focused on AI chip production. Major players Samsung Electronics and SK Hynix witnessed substantial declines driven by worries surrounding AI infrastructure capital expenditure and intensifying pressure from Chinese competitors in the memory chip sector.
This selling momentum extended into Bitcoin and alternative cryptocurrencies. Ethereum experienced approximately 4.43% losses, Solana declined 4.41%, while XRP registered a 4.89% decrease during the same timeframe.
Federal Reserve Policy Uncertainty Weighs on Sentiment
Investor attention remains focused on the Federal Reserve’s upcoming policy announcement. The central bank’s two-day policy meeting concludes Wednesday, with market pricing currently indicating a 38% probability of an unexpected rate increase this week. Projections for a September rate hike have surged beyond 80%, based on CME FedWatch tracking data.
Elevated interest rates generally diminish the attractiveness of non-yielding assets such as Bitcoin.
BTC had been facing challenges maintaining its recent bounce. Persistent withdrawals from United States-based spot Bitcoin exchange-traded funds have applied downward pressure on valuation throughout the preceding week.
Over the weekend, BTC successfully defended its 21-day and 50-day simple moving averages, positioned at $64,289 and $63,261 respectively. Cryptocurrency strategist Michaël Van de Poppe indicated that maintaining these technical levels represented “a strong signal for the markets to be betting on the long side,” though he cautioned the situation remained “still a little fragile.” He expressed preference for observing a rally toward the $66,000–$67,000 range within the next one to three days to validate strengthening demand.
Large Holders Continue Building Positions
Blockchain analytics from Santiment revealed that wallet addresses containing between 10 and 10,000 BTC accumulated 19,696 BTC during an eight-day window. Retail interest, conversely, has been diminishing — wallets holding less than 0.01 BTC demonstrated reduced dip-purchasing behavior. Santiment characterized this dynamic as “usually constructive,” indicating supply migration toward more committed holders.
Market observer Ali Charts additionally highlighted that Bitcoin’s 3-day Bollinger Bands are beginning to contract. He observed that compressed volatility environments like this are “often followed by a major price expansion.”
During Monday’s early trading, BTC had temporarily neared $66,000 following reports that the United States and Iran had suspended military strikes. Both nations refrained from attacks beginning Sunday, with Iran’s foreign ministry acknowledging discussions with Oman regarding Strait of Hormuz access. This optimism-driven rally dissipated by Tuesday’s session.
QCP Capital observed that Bitcoin and Ethereum remained higher by approximately 11.6% and 24.6% month-to-date respectively, despite navigating a difficult macroeconomic environment.
The latest quoted price for Bitcoin stood at $63,494, captured at 01:42 ET on July 28.
