Bitcoin fell below $64,000 after a global chip sell-off and $477M in ETF outflows erased $24B from crypto market cap. The Fed decision is next.
The crypto market shed $23.37 billion in value on July 28 as a global sell-off in semiconductor stocks drove a broader retreat from risk assets. Bitcoin slipped below $64,000 and traded near $63,130 at press time, down nearly 1% from the day's high above $63,700.
Ethereum dropped about 1% to $1,883. XRP and Solana fell 1.3% and 1.77%, respectively. Hyperliquid took one of the hardest hits, losing more than 3%.
The decline followed a sharp plunge in Asian tech stocks. South Korea's Kospi tumbled 10.8%, its worst single-day drop since 2020. Samsung Electronics lost 13.4%, and SK Hynix fell 14.7%. The sell-off started after reports that a state-backed Chinese manufacturer had begun producing domestic deep-ultraviolet lithography machines. Investors saw the news as a threat to established semiconductor-equipment makers. Worries about AI infrastructure spending added to the pressure.
Crypto has no direct link to chip manufacturing, but the risk-off move spilled into digital assets as demand was already cooling. U.S. spot Bitcoin ETFs logged three straight sessions of net outflows, ending a seven-day inflow streak. The funds saw $225.1 million in withdrawals on July 23, followed by $240.1 million on July 24. Another $11.6 million left on July 27, bringing the three-day total to $476.8 million, according to SoSo Value data. Those outflows removed a key source of spot demand as Bitcoin struggled to hold above $64,000.
Investors also stayed cautious ahead of the Federal Reserve's policy decision on July 29. Markets expect rates to stay unchanged, but traders are watching the central bank's outlook for clues on future moves. The uncertainty has pushed money away from risk assets, including crypto.
TradingView's total crypto market cap excluding stablecoins fell $23.37 billion on July 28, leaving the market at roughly $1.86 trillion. The chart shows that July's recovery stalled just below $1.95 trillion, where buyers failed several times to extend the rally before sellers took control. The Relative Strength Index dropped to 44.44, pointing to stronger bearish momentum without entering oversold territory.
The $1.85 trillion level is the nearest support. A break below that could open the path to $1.80 trillion, then the June and July lows near $1.75 trillion. On the upside, the market needs to reclaim $1.90 trillion before challenging the resistance zone between $1.94 trillion and $1.96 trillion.
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