Bitcoin fell to a 10-day low near $63,000 at the opening of Wall Street trading on Tuesday. The decline occurred amid a broader sell-off in technology stocks and growing uncertainty regarding Federal Reserve policy.

The cryptocurrency dipped below the $63,000 mark for the first time since July 17.

Asian semiconductor losses drive global sentiment

The sell-off was driven by losses in the semiconductor sector in Asia, which spilled over into US trading sessions. South Korea’s KOSPI index fell 10.8% in a single session. Major chipmakers saw significant declines, with SK Hynix falling 14.8% and Japan’s Kioxia Holdings dropping 18.3% on the day.

In the United States, reports indicated the Nasdaq Composite Index was the only major US index to close lower for the day.

Tech capital expenditure and cash burn concerns

Investor anxiety has been fueled by the massive capital expenditure plans of major technology firms. Combined 2026 capex guidance from Alphabet, Microsoft, Amazon, and Meta is tracking toward $725–730 billion. Wall Street projects that this figure could climb toward $900 billion in 2027.

Alphabet posted its first recorded cash burn in the second quarter, amounting to $5.9 billion, despite its cloud unit reporting 82% growth.

Meanwhile, AMD signed an agreement with Core Scientific to provide up to 2.5 gigawatts of data center capacity. Under the deal, AMD plans to access over 500 MW of AI-ready data center capacity starting in 2027, with a target to expand to 2.5 GW.

Fed uncertainty and regulatory delays

Monetary policy uncertainty remains a key factor for markets. According to data from the Federal Reserve, the key interest rate is 3.50%–3.75%. According to CME FedWatch data, there is a 32% probability of a surprise 25 basis point rate hike this week, while the expectation of a rate hike in September is above 80%.

Regulatory developments in the US have also stalled. The US Senate postponed discussions of the CLARITY Act due to the prioritization of Russia sanctions and federal appointments. The act is expected to be on the Senate agenda next week at the earliest.

Crypto market liquidations and ETF outflows

Crypto markets experienced long liquidations in excess of $510 million over 24 hours. CoinAnk warned of a risk of a long liquidation 'cascade' below $64,700, noting that 'extremely large long liquidity has accumulated below this level'. The firm also identified the area between $65,800 and $66,200 as a 'major short liquidation zone'.

US spot Bitcoin ETFs continued to see fund outflows, adding pressure to the price. In the broader crypto market, Ethereum fell 1.1%, XRP fell 2%, Solana fell 1.9%, and Dogecoin fell 1.5%, while Cardano rose 0.9%.