Bitcoin Bounces Back to $63K as Nasdaq Recovers: Chip Selloff Tests Crypto Resilience

Market Overview

Bitcoin (BTC) returned to $63,000 on Friday as the Nasdaq trimmed its early losses, recovering from a dip to $62,800. The broader market selloff in chipmakers initially dragged risk assets lower, pulling bitcoin back from the $65,000 level reached earlier this week on a soft inflation print.

Key Developments

AI Trade Wipeout Hits Crypto Stocks

Crypto-related stocks tied to the AI trade led declines. Former bitcoin miners-turned-data-center providers like Hut 8 (HUT), Bitdeer (DTDR), and MARA Holdings (MARA) dropped over 7%. Strategy (MSTR) fell 2.25%, while Coinbase (COIN), Bullish (BLSH), and Circle (CRCL) each lost about 1.5%.

Bitcoin's Downtrend Channel Intact

Analyst Alex Kuptsikevich noted that bitcoin's reversal attempt failed, with the price dropping back below its 50-day moving average and returning to the downtrend channel that has held since June. The lower boundary sits near $56,000, with support at $61,000 and $59,000.

Oil Surge Could Reignite Inflation Worries

WTI crude oil futures are on track for their best weekly gain since April, surging nearly 12%. The rebound could revive inflation fears, potentially dragging bitcoin lower after its recent gains from cooler inflation data.

Other Notable Stories

• SpaceX in talks with the Pentagon for a computing capacity deal worth billions.
• Trump Media reportedly pitching a $100,000/month fee for faster access to Trump's social media posts.
• Meta and Anthropic in talks on a $10 billion computing power deal.
• Apple reclaims the most valuable company spot from Nvidia.
• Galaxy Digital inks a stadium naming rights deal with Texas Tech.

Market Sentiment

Bitcoin is down 2% over the past 24 hours, with ether (ETH) at $1,815, down 3.5%. The Nasdaq narrowed its loss to 1% after being down 2.5% at its worst. The Fed meets July 28-29, with markets watching for rate decisions.

Image: Memory chips are the bedrock powering AI systems. (dujin yun/Pixabay)