Key facts
- Bitcoin fell to approximately $63,000 on Friday, down 1.7% over 24 hours and 2.2% on the week.
- Ether held steady at $1,836, up 2.4% over seven days.
- Nasdaq 100 futures dropped 1.8% and S&P 500 contracts fell 0.9%.
- A semiconductor ETF slid 3% in premarket trading.
- Taiwanese stocks fell into a technical correction, and Asia's main benchmark hit a two-month low.
- Fed Governor Chris Waller indicated that a rate hike could be considered if inflation data remains high.
- The two-year Treasury yield surged to 4.27% and the 10-year yield jumped to 4.6% following Waller's comments.
Bitcoin experienced a notable slip to approximately $63,000 on Friday, a decline of 1.7% over 24 hours and 2.2% for the week. This downturn occurred as a deepening selloff in chipmakers globally exerted downward pressure on risk assets. Ether, however, showed more resilience, holding steady at $1,836 and maintaining a 2.4% gain over the week. Other cryptocurrencies like Hyperliquid led the losses, dropping 8% on the day and 12% on the week.
Futures for the Nasdaq 100 fell by 1.8%, and S&P 500 contracts were down 0.9%, mirroring the weakness in the tech sector. A semiconductor ETF declined by 3% in premarket trading. In Asia, Taiwanese stocks entered a technical correction, and the region's main benchmark index reached a two-month low. European markets showed more stability, attributed to their lower exposure to technology stocks.
The underlying concern driving the market sentiment is whether the substantial investments in artificial intelligence by hyperscalers will yield returns sufficient to justify current valuations, a question that TSMC's recent results did not fully address. This uncertainty is impacting the broader tech and crypto markets.
Bitcoin's price movements this quarter have largely followed macroeconomic trends. A recent soft inflation print had provided a temporary boost, pushing Bitcoin towards $65,000, but the current chip selloff is reversing that trend. The Federal Reserve's upcoming meeting on July 28-29 is a key event to watch for further market direction.
Later, Fed Governor Chris Waller's comments suggesting a potential near-term rate hike if inflation data remained high further pressured markets. This led to a surge in Treasury yields, with the two-year yield reaching 4.27% and the 10-year yield climbing to 4.6%. Bitcoin's attempt at a bounce reversed, falling back to $62,300, down 2.8% over 24 hours.