ME News reports that on July 29 (UTC+8), U.S. tech stocks came under pressure amid a sharp decline in Asian semiconductor shares. Following the open of U.S. markets on Tuesday, Bitcoin briefly dropped below $63,000, breaking a key support level and hitting its lowest level in nearly 10 days. Market data indicates that Bitcoin’s price movement was influenced by global tech stock sell-offs, with the collapse in Asia’s semiconductor sector triggering a chain reaction across risk assets that spread to U.S. markets. This tech stock correction primarily stems from investor concerns over the return on investment in AI infrastructure. Markets are beginning to question the sustainability of continued capital expenditure increases by hyperscale cloud companies and whether massive AI investments can generate sufficient returns. Currently, Alphabet, Microsoft, Amazon, and Meta Platforms collectively project their 2026 capital expenditures to reach approximately $725–730 billion, with Wall Street anticipating this figure could rise further to $900 billion by 2027. Notably, Alphabet reported its first negative free cash flow in the second quarter, with cash outflows reaching $5.9 billion. Although its cloud business grew 82% due to rising AI computing demand, the high-investment model has raised market concerns. In the crypto market, Bitcoin’s decline triggered large-scale liquidations of long positions. Data shows that over $510 million in long positions were liquidated across the crypto market in the past 24 hours. Analysts suggest that if BTC falls below $64,700, it could trigger a cascading wave of long liquidations; currently, significant long liquidity accumulates below this level, while substantial short liquidation pressure exists between $65,800 and $66,200. Market focus has now shifted to earnings reports from AI giants and technology firms’ capital expenditure plans, as investors assess whether the AI investment boom retains sustainable momentum. (Source: PANews)
Bitcoin Falls Below Key Support to 10-Day Low Amid AI Sector Sell-Off
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Summary
Bitcoin news: On July 29 (UTC+8), Bitcoin dropped below $63,000, reaching a 10-day low as global tech stocks declined amid concerns over AI infrastructure. Asian semiconductor shares plunged, pressuring risk assets. Over $510 million in crypto long positions were liquidated within 24 hours. A break below $64,700 could trigger further liquidations, as significant long liquidity exists below that level. Traders are also monitoring altcoins amid the broader market sell-off.
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