Bitcoin dipped back to the $62,000 range after an attempted recovery toward $65,000 lost momentum. After climbing slightly above its intraday low, BTC was last trading near $62,500, marking a 4% loss over the past 24 hours. The renewed decline across crypto assets was mirrored by steep sell-offs in chip stocks and Asian equities.
Simultaneous selling pressure across markets
Stocks linked to cryptocurrencies also suffered losses, though they managed to rebound somewhat from deeper intraday declines. Shares of digital asset investment giant MicroStrategy fell by 2.1%, while Coinbase dropped 1.9%. The rising cost for investors to hedge against further downside signaled mounting market nervousness. As the largest U.S.-based crypto exchange, Coinbase continues to serve as a barometer for both institutional and retail flows within the sector.
Volatility expectations rose in the options market as well. According to Volmex, Bitcoin’s 30-day implied volatility index (BVIV) rose about 10% to hit 46.5. Meanwhile, the VIX index—measuring expected fluctuations on U.S. equities—jumped 16.5% to reach 20.0, its highest level in weeks.
Glossary: Implied volatility reflects the market’s expectation of future price swings, as seen in option prices. BVIV measures the expected short-term volatility for Bitcoin, offering insight into market anticipation of sharp movements.
Chip stocks intensify sell-off in Asia
Overnight, the brunt of the downturn hit South Korea. The Kospi index plunged 10%, with SK Hynix and Samsung Electronics both tumbling more than 10%. The selling wave extended to regional exchange-traded funds (ETFs). The iShares China Large Cap ETF (FXI) fell as much as 2% intraday, touching a 52-week low. At its session trough, the fund was 22% below its peak for the past year.
The Hong Kong-focused iShares MSCI Hong Kong ETF (EWH) slipped less than 1% on Tuesday, but at its lowest point it stood about 15% under its 52-week high. The iShares MSCI South Korea ETF (EWY) lost roughly 9% and, at its session low, was 13% down from its one-year peak. Notably, the Taiwan-focused iShares MSCI Taiwan ETF (EWT) recorded a 5% decline.
| Asset | Intraday change | Distance from 52-week high |
|---|---|---|
| FXI | Down up to 2% | 22% lower |
| EWH | Down less than 1% | 15% lower |
| EWY | Down about 9% | Roughly 13% lower |
| EWT | Down 5% | 6.5% lower |
Analysts noted that the heavy weighting of semiconductor firms in these indices intensified the selling. Key names like SK Hynix and Samsung Electronics dominate the South Korean benchmark, while Taiwan Semiconductor Manufacturing Company has the largest impact in Taiwan’s markets.
US tech stocks also lose ground
US futures pointed to a weak open, with the Nasdaq 100 futures dropping 2.6% and S&P 500 futures falling 1.2% ahead of the start of trading. Micron Technology—coming off a record close Monday—tumbled more than 7%. Once regular trading began, the S&P 500 was down 1%, the Nasdaq Composite retreated 1.5%, and the Dow Jones hovered near flat.
The tech sector had already come under pressure the previous day, as the Nasdaq Composite fell 1.3% and Alphabet slid 5%, weighing heavily on the index. While blue-chip names like Microsoft and Amazon saw smaller declines Tuesday, helping the main indices rebound from their lows, chipmakers remained weak: SanDisk plunged 12%, Seagate Technology fell over 7%, and Qualcomm lost 9%.
Iran has fully accepted the highest level of future nuclear inspections. Based on this and other major concessions by Iran, I allowed the Strait of Hormuz to remain open, but if needed, all ships are in place to quickly reimpose a naval blockade.
Trump’s statement fails to halt the sell-off
The ongoing market slump persisted despite US President Donald Trump’s attempt to ease concerns over oil shipments through the Strait of Hormuz. Trump highlighted Iran’s acceptance of long-term nuclear oversight and assured that traffic through the waterway would not be disrupted. Nonetheless, investors continued to withdraw from risky assets throughout the day.
Technology-focused ETFs faced marked declines alongside the broader market rout. The Technology Select Sector SPDR Fund retreated 3%, while the VanEck Semiconductor ETF shed 6%. The breadth of the pullback indicated that Bitcoin’s drop was not unique to crypto but part of a wider trend of risk aversion across global markets.
