Crypto bleeds with the tech rout as Bitcoin taps a two-week low

Bitcoin slid to $61,893 on June 23, its lowest level in nearly two weeks, as a sharp global technology selloff pushed investors out of risk assets across the board. Altcoins fared worse. Ether dropped as much as 5.6%, while Solana and XRP fell as much as 6.4% and 3.5%, respectively. Total crypto market capitalisation fell around 3% to approximately $2.14 trillion.

A Korea-Sparked Semiconductor Rout Set the Tone

The catalyst came from outside crypto entirely. The selloff that began in U.S. technology stocks continued into Asian markets, with South Korea's Kospi closing down 10%, its fourth circuit breaker of the year, as chip giants Samsung Electronics and SK Hynix fell more than 12% and foreign investors dumped over $2.5 billion of shares. Samsung and SK Hynix are global proxies for AI chip demand, so their slide is the same trade that hit SpaceX and the Nasdaq, with investors reassessing whether the enormous spending on AI will pay off.

A rotation out of this year's best-performing technology and chip shares sank global equities, with a gauge of Asian stocks falling more than 2% after a record close. S&P 500 futures fell 0.8% and Nasdaq 100 contracts dropped 1.3%, following a slide in megacap tech and rising bond yields. The 10-year Treasury yield climbed to 4.48% as the Fed signalled it could raise rates again.

Crypto prices are increasingly being driven by the same AI-focused tech trade steering equities, with upcoming Micron earnings and key U.S. economic data seen as major tests for risk sentiment. With a peace roadmap in place and oil sliding, the dominant force is the same AI-driven tech trade that has carried equities to records, and crypto is falling as that trade wobbles.

Leverage Made It Worse

Bitcoin accounted for $213 million of total liquidations, with ether adding $169 million. The flush follows a week in which leveraged longs had built up through the U.S.-Iran deal rally, leaving the market exposed when the Asian selloff hit. In total, more than $600 million in positions were wiped out across crypto markets in 24 hours, with long traders taking the brunt after a bounce that never materialised.

Weak U.S. institutional demand, reflected in a negative Coinbase premium, is weighing on Bitcoin, which could enter a new phase of selling if it breaks below the $59,000 to $60,000 support range.

Sources:
Bloomberg: Bitcoin Hits Two-Week Low as Tech Selloff Sparks Risk-Off Mood
CoinDesk: Bitcoin Under $63,000 Amid Tech Selloff
CoinDesk: Bitcoin Drop to $62,000 Creates $700 Million in Liquidations