Key Takeaways
- BTC declined more than 3% Tuesday, reaching approximately $63,494 — the weakest level observed since mid-July
- Massive selloff in artificial intelligence technology stocks, with South Korea’s KOSPI plunging over 10%, pressured digital assets
- Market participants now see a 38% probability of an unexpected Federal Reserve rate increase this week, while September odds exceed 80%
- Crypto strategist Michaël Van de Poppe highlighted BTC maintaining crucial moving average levels at $64,289 and $63,261
- Large wallet addresses containing 10–10K BTC accumulated approximately 20,000 BTC within an 8-day window, per Santiment analytics
The leading cryptocurrency experienced a sharp decline exceeding 3% during Tuesday’s trading session, plummeting to $63,494 — marking its weakest performance in a ten-day span. The downturn coincided with widespread selling pressure across AI-related technology equities that rippled through global financial markets and into digital asset territory.
South Korea’s benchmark KOSPI index experienced a dramatic slide exceeding 10% as market participants dumped holdings in artificial intelligence semiconductor manufacturers. Major players Samsung Electronics and SK Hynix witnessed substantial price declines driven by apprehension surrounding AI infrastructure capital expenditure and mounting pressure from Chinese memory chip competitors.
The selling momentum transferred directly into Bitcoin and alternative digital currencies. Ethereum witnessed approximately 4.43% losses, Solana decreased 4.41%, while XRP registered a 4.89% decline during the corresponding timeframe.
Federal Reserve Uncertainty Weighs on Markets
Financial markets remain focused on the Federal Reserve’s upcoming policy decision. The central bank’s two-day policy meeting concludes Wednesday, with current market pricing indicating a 38% likelihood of an unexpected rate increase this week. Probability assessments for a September rate adjustment have surged beyond 80%, based on CME FedWatch Tool statistics.
Elevated interest rates generally diminish the attractiveness of non-yield-bearing assets such as Bitcoin.
The flagship cryptocurrency had previously encountered difficulty maintaining its recent bounce. Persistent outflows from United States-listed spot Bitcoin exchange-traded funds have applied downward pressure on valuation throughout the preceding week.
During Sunday’s session, BTC successfully defended its 21-day and 50-day simple moving average thresholds, positioned at $64,289 and $63,261 respectively. Digital asset analyst Michaël Van de Poppe characterized maintaining these technical levels as “a strong signal for the markets to be betting on the long side,” though he cautioned the situation remained “still a little fragile.” He indicated wanting to observe a rally toward the $66,000–$67,000 range within the subsequent one to three days to validate strengthening momentum.
Large Holders Continue Strategic Buying
Blockchain analytics from Santiment revealed that wallet addresses containing between 10 and 10,000 BTC accumulated 19,696 BTC across merely eight days. Retail participation, conversely, has demonstrated cooling trends — wallet addresses holding sub-0.01 BTC exhibited reduced dip-buying behavior. Santiment characterized this dynamic as “usually constructive,” with supply transitioning toward more resilient holders.
Market observer Ali Charts additionally highlighted that Bitcoin’s 3-day Bollinger Bands are beginning to compress. He emphasized that reduced volatility environments like this are “often followed by a major price expansion.”
During Monday’s earlier hours, BTC had momentarily climbed toward $66,000 following reports that the United States and Iran had suspended military actions. Both nations refrained from attacks beginning Sunday, with Iran’s foreign ministry acknowledging discussions with Oman regarding reopening the Strait of Hormuz. This geopolitical relief rally dissipated by Tuesday’s session.
QCP Capital observed that Bitcoin and Ethereum remained elevated approximately 11.6% and 24.6% month-to-date respectively, despite confronting a difficult macroeconomic environment.
Bitcoin’s latest recorded price stood at $63,494, captured at 01:42 ET on July 28.
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