Bitcoin drops below $63,000 as tech selloff hits crypto
A broad macro risk-off rotation driven by semiconductor losses and Middle East tensions pushed bitcoin below $63,000, though orderly derivatives positioning suggests a lack of market panic.
Bitcoin fell 1.2% to slip below $63,000 on Friday, while ether dropped 1.74%, as a global retreat from risk assets spilled over into digital currencies. The decline mirrored sharp losses in traditional markets, where Nasdaq 100 futures fell 1.91% and Japan’s Nikkei 225 dropped 4%. South Korea’s Kospi was closed for Constitution Day. "The market is ending the week with two bruises: AI fatigue and Hormuz heat,” said Patrick Munnelly at Tickmill Group. “The semiconductor selloff has gone from profit-taking to position-clearing, dragging Asia toward its worst levels in months."
The move extended beyond equities and crypto into classic safe havens, underscoring the macro nature of the rotation. The Dollar Index rose to 100.75, while gold climbed 0.61% to move back above $4,000. S&P 500 futures slipped 0.96%, confirming that the selling pressure was driven by broad macroeconomic forces rather than crypto-specific developments.
For market professionals, the derivatives complex offered reassurance that the drop was orderly rather than symptomatic of a liquidity crisis. The long-short ratio in crypto futures slipped to 0.94, the lowest since June 2, confirming bears are in control. However, overall volume cooled by 4% to $163 billion and total open interest held steady around $111 billion. Bitcoin's open interest pulled back slightly to 747,000 BTC from 755,000 BTC, with similar steady trends in ETH, XRP, and SOL futures. This indicates an absence of aggressive new shorting or panic margin calls across major tokens.
Options markets reinforced this controlled descent, with 30-day implied volatility for both bitcoin and ether remaining near recent lows. Traders are positioning for specific downside targets rather than rushing for broad hedges. The $62,500 bitcoin put emerged as the clear favorite, while three of the top five most-traded ether contracts were puts. At the same time, the $2,100 ether call remained the single most-traded bet of the past 24 hours, and a trader recently purchased large-scale ether straddles betting on significant price swings by July 24.
The HYPE token was a notable exception to the calm derivatives picture, with open interest rising nearly 2% alongside an 8% spot price drop. This combination typically confirms price weakness through aggressive new shorting, matching the negative cumulative volume delta seen in memecoin DOGE. Across the broader market, the average relative strength index dipped to 42.23, approaching oversold territory that preceded July's relief bounce.
Altcoins mostly outperformed bitcoin, pushing CoinMarketCap's Altcoin Season indicator to 53 out of 100. Privacy coins bucked the trend, with ZEC advancing 1.56% to $531 and DASH gaining 0.78%. AI tokens FET and TAO posted slight gains of about 0.20%. The declines came despite a recent uptick in broader market engagement, as centralized exchange spot volumes rose 15.3% to $1.11 trillion in June, marking the first increase in five months.
