Bitcoin Below $63K as Chip Selloff Hits Wall Street
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- Bitcoin dropped below $63,000 at Tuesday's Wall Street open, hitting ten-day lows as a semiconductor-led selloff from Asia spread to US markets — its lowest level since July 17.
- South Korea's KOSPI Index closed down 10.8% in a single session, with chip-maker SK Hynix falling 14.8% and Japan's Kioxia Holdings dropping 18.3% on the day.
- Micron Technologies fell more than 10% at the open to its lowest level since May 22, while the tech-heavy Nasdaq Composite dropped just over 1%.
- Alphabet, Microsoft, Amazon, and Meta have combined 2026 capex guidance tracking toward $725–730 billion, with Wall Street projecting the figure could climb toward $900 billion in 2027.
- Alphabet posted its first-ever cash burn on record in Q2 at $5.9 billion, even as its cloud unit — which rents AI computing capacity — posted 82% growth.
- Moonshot AI's Kimi K3 open-source model, launched two weeks ago, benchmarked competitively against proprietary systems from Anthropic and OpenAI, intensifying scrutiny over the return profile of Western hyperscaler AI spending.
- Crypto long liquidations exceeded $510 million over 24 hours per CoinGlass data, with CoinAnk warning of a liquidation "cascade" risk below $64,700 and identifying the $65,800–$66,200 zone as a major short liquidation area to the upside.
Why it matters: Alphabet's first-ever $5.9 billion cash burn in Q2, alongside $725–730 billion in projected 2026 capex from the four biggest hyperscalers, has investors repricing AI infrastructure assumptions. Bitcoin, previously decoupled from tech swings, is now caught in the crossfire as the selloff extends from Asia chip stocks to US tech — crypto is no longer trading on its own narrative.
