Bitcoin declined to $63,000 on Friday, recording a 1.7% drop over 24 hours and a 2.2% decrease for the week, according to CoinDesk data. As the largest cryptocurrency by market value, Bitcoin’s performance was mirrored across risk assets, following a global selloff in semiconductor stocks.
Chipmakers drag markets lower
Nasdaq 100 futures fell 1.8%, while S&P 500 contracts decreased 0.9% during premarket trading. The semiconductor-focused ETF registered a 3% slide, amplifying concerns across global markets. In Asia, Taiwan’s main stock index, home to key companies in the chip sector, slipped into a technical correction. The broader Asian equities benchmark also fell to a two-month low.
In contrast, European markets proved more stable, bolstered by relatively lower exposure to major technology stocks.
| Market/Asset | 24h Change | Weekly Change |
|---|---|---|
| Bitcoin (BTC) | -1.7% | -2.2% |
| Ether (ETH) | +0.1% | +2.4% |
| Hyperliquid | -8% | -12% |
| Nasdaq 100 Futures | -1.8% | N/A |
| S&P 500 Contracts | -0.9% | N/A |
| Semiconductor ETF | -3% | N/A |
AI investments and chip sector scrutiny
The volatility in chipmakers has focused attention on the rapid expansion efforts of AI hyperscalers, which include major technology companies investing large amounts in artificial intelligence infrastructure. Investors have questioned whether the hundreds of billions spent on these technologies can justify the current high valuations attached to chip manufacturers.
Recent earnings from Taiwan Semiconductor Manufacturing Company (TSMC), a leading contract chipmaker, failed to resolve uncertainties within the sector.
Mini dictionary: TSMC (Taiwan Semiconductor Manufacturing Company) is the world’s largest dedicated independent semiconductor foundry. It manufactures chips for leading technology firms, playing a crucial role in the global electronics supply chain.
Chipmakers remain under scrutiny over whether the significant investments by AI hyperscalers will ultimately yield the returns needed to support their valuations, and TSMC’s results this week did not resolve ongoing doubts.
Crypto follows macro shifts
The trend in digital assets reflected this broader risk-off sentiment. Ether performed relatively better, trading at $1,836, and posted a gain of 2.4% over the past week. Among the notable losers, Hyperliquid dropped 8% in a single day and lost 12% for the week.
Earlier in the week, a soft US inflation reading supported a brief Bitcoin rebound toward $65,000. However, this recovery appears to have been driven mainly by macroeconomic factors, with the ongoing chip sector turmoil now exerting downward pressure on crypto assets.
This quarter has seen crypto follow dominant macroeconomic trends. A favorable inflation report lifted Bitcoin, but continued chipmaker weakness is weighing on riskier assets before the Federal Reserve’s next policy meeting at the end of July.
The Federal Reserve is scheduled to hold its next meeting on July 28 and 29, and markets will be watching for further signals regarding monetary policy in the face of ongoing volatility across both technology equities and digital currencies.
