US Tech Debacle Pulls Bitcoin Back to $64K

Bitcoin (BTC) lost over 3% of its value as the stock market tumbled and sentiment towards risk assets like cryptocurrencies weakened.

BTC, which was trading at $65,500 at the start of Asian trading hours, fell to $64,000 within minutes. The sudden drop led to liquidations of $250 million, the most since early July.

The CoinDesk 20 Index (CD20), which tracks the market’s largest tokens, fell by 3.3% following the developments.

Ether (ETH) became the cryptocurrency that lost the most, losing 7.5 percent with $100 million in liquidations due to long positions, outflows in ETH ETFs launched a few days ago, and the general decline.

Binance recorded the highest liquidation among exchanges with $118 million, 88 percent of which were long-term transactions. OKX and Huobi, popular with Asian traders, reported that 94 percent of long positions opened on these exchanges were liquidated.

The decline came as U.S. technology stocks took a beating, causing the tech-heavy Nasdaq 100 index to lose 660 points, its biggest drop since 2022.

Quarterly earnings for Google parent Alphabet (GOOG) and Tesla (TSLA) sent shares of the firms down as much as 12%. The so-called “Magnificent 7” tech stocks lost more than $750 billion in market value yesterday, a record for the group.

The losses spread to Asian markets as Japan’s Nikkei 225 index fell more than 3% on concerns that the Bank of Japan may raise interest rates.