A wave of selling began with the plunge in East Asian stock markets and quickly dragged down the crypto sector. South Korea’s KOSPI index plummeted nearly 10%, triggering a Level 1 circuit breaker trading halt. Major chipmakers Samsung Electronics and SK Hynix led the losses, each tumbling over 12%. The risk-off sentiment swiftly crossed into global markets: Japan’s Nikkei index shed roughly 4%, the Philadelphia Semiconductor Index dropped 2.2%, and Nvidia shares declined 5% around the US close. The domino effect hit digital assets immediately, wiping out leveraged trading positions as total crypto liquidations reached $100 million within just 60 minutes, according to data from WatcherGuru.
This barrage of selling pressure forced Bitcoin down 2.85% to $63,490 during July 28 trading. The benchmark cryptocurrency was pushed back toward the lower end of its $60,000 to $66,000 range, touching an intraday low of $63,055. Capital outflows also weighed on institutional channels. US spot Bitcoin ETFs registered net outflows of $11.64 million on July 27, led by BlackRock’s IBIT fund, which shed $8.82 million.
Surprise Signal from Citadel
Stock market headwinds are now colliding with macroeconomic calendar uncertainty. Ahead of the Federal Open Market Committee (FOMC) meeting on July 28 and 29, Citadel Securities projected that the US central bank could prepare for a surprise interest rate hike this week. The analysis, cited by WatcherGuru, runs counter to prevailing market expectations that previously priced in a 38% probability of a 25 basis point hike.
The central bank’s policy path will become clearer following the release of two critical economic data points this Thursday: the US second-quarter gross domestic product (GDP) print and the June Personal Consumption Expenditures (PCE) inflation report. Pending those announcements, Bitcoin’s technical charts are flashing signs of fading momentum. The Relative Strength Index (RSI) dropped to 46.77, slipping below its moving average line of 53.49. The MACD histogram also moved into negative territory at -104.93. Citing this price action, analyst Crypto Patel identified the 0.618 Fibonacci retracement level at $61,000 as crucial support in a continued downside scenario.
Quiet Tactics of Large Holders
Behind the declining prices and red technical indicators, large capital holders appear to be employing a different playbook. Data from analytics platform Santiment reveals that wallets holding between 10 and 10,000 coins accumulated 19,696 BTC over the past eight days. This pattern highlights a classic crypto market dynamic: while macroeconomic headwinds push retail investors to dump holdings at discount levels, deep-pocketed participants step in to absorb the supply. For ordinary market participants, the divergence between retail panic and quiet whale accumulation offers essential context before making rushed exit decisions. Reported via crypto.news.
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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.
