Key facts
- Bitcoin fell 2.7% to $63,200 after the U.S. market close.
- South Korea's Kospi stock index plunged 11%, its worst single-day decline in years.
- AI and layer-1 tokens were hit hardest, with FET, NEAR and HYPE losing up to 10%.
- The U.S. Senate shelved the Crypto Clarity Act, prioritizing a Russia sanctions bill.
- XRP futures open interest rose nearly 6% to 2.35 billion tokens.
Bitcoin slid approximately 2% in U.S. overnight trading as Asian stocks, led by South Korea's Kospi index, experienced a significant sell-off. The Kospi plunged 11%, marking one of its worst single-day declines in years and contributing to a broader decline in global risk assets. AI and layer-1 tokens were particularly affected, with FET, NEAR, and HYPE losing as much as 10% over a 24-hour period.
Adding to market uncertainty, the U.S. Senate has postponed a vote on the Crypto Clarity Act, a key piece of crypto regulatory legislation, to prioritize a Russia sanctions bill and federal nominations. With the Senate recess set for August 8, the bill's fate this year is now uncertain.
Ether also saw a decline, falling 0.56% and failing to break the $2,000 level. Traditional markets also showed weakness, with Nasdaq 100 futures down, and gold and silver prices falling. Derivatives markets are showing a bearish shift, with short positions increasing and cumulative volume delta turning negative for the first time in weeks. Funding rates for several altcoins have also flipped negative.
Despite the broader market downturn, Lighter (LIT) emerged as a standout gainer, rising 3.97%. MORPHO and ethena (ENA) also showed resilience within the DeFi sector. However, tokens like FET, NEAR, HYPE, and WLD experienced significant losses, with PUMP giving back recent gains.