The collapse in Asian semiconductor stocks directly impacted the cryptocurrency market, pulling Bitcoin down to $62,684 early in the Wall Street trading session on July 28, 2026. This price marks Bitcoin’s lowest level since July 17, accompanied by a wave of long liquidations that reached $510 million over the past 24 hours, according to CoinGlass data.
However, this price drop was not merely a matter of internal crypto market fluctuations, but rather the fallout from widespread panic across the global technology sector.
A Storm from the Memory Sector
South Korea’s KOSPI index plummeted 10.8% in a single trading session. Memory chipmaker SK Hynix plunged 14.8%, while Japanese peer Kioxia tumbled 18.3%. In the United States, the Nasdaq Composite opened down over 1%, led by Micron Technologies shares, which sank more than 10% to hit their lowest level since May 22.
The tech market sell-off was triggered by the release of Moonshot AI’s Kimi K3, an open-source AI model from China. The new model is seen as capable of competing with offerings from Anthropic and OpenAI at a fraction of the cost. This development has prompted investors to question the potential return on investment for Western cloud service providers that have committed massive capital to AI infrastructure.
Bearish Signals Deepen
The break below the $64,700 threshold triggered a cascade of liquidations for traders holding long positions, in line with earlier warnings from CoinAnk. Currently, short liquidation zones are heavily clustered in the $65,800 to $66,200 range.
On the technical front, indicators reported by Decrypt show a clear bearish trend. The Relative Strength Index stands at 46.5. A death cross pattern, in which the 50-day Exponential Moving Average sits below the 200-day EMA line, has remained active for months. The Squeeze Momentum Indicator has also been flashing for nine consecutive trading bars.
Market Diverges Ahead of Fed Meeting
The Federal Open Market Committee meeting is scheduled for July 28-29. Fed Chair Kevin Warsh is expected to keep benchmark interest rates unchanged in the 3.50-3.75% target range. However, market participants remain nervous following the June press conference, when the odds of a rate hike briefly surged to 70%.
The divergence in capital rotation was evident across markets today. Dow Jones futures climbed 0.7% while the Nasdaq dropped 0.9%. In commodity markets, global crude oil prices fell 2% and gold slipped 1%.
For crypto market participants, this broad pullback serves as a stark reminder: as Wall Street investors recalculate the business viability of their tech holdings, Bitcoin’s volatility rarely hesitates to pull highly leveraged traders into the liquidation wreckage.
Reported via Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
