Bitcoin dropped to a 24-hour low of US$62,785 before recovering to approximately US$63,836 by Wednesday afternoon AEST, marking a 4.3% decline from Monday's intraday high of US$65,618 and leaving the cryptocurrency down 3.7% over seven days. The decline coincided with a second consecutive session of losses in Asian semiconductor stocks, with Samsung Electronics closing down 13.4% on Tuesday and SK Hynix falling 14.7%. Analysts attributed the selloff to concerns over AI infrastructure financing and reports of Chinese firms developing domestic deep ultraviolet lithography equipment, reigniting worries about Chinese memory makers expanding production capacity.
By Wednesday afternoon AEST, Bitcoin traded at US$63,836, up 0.91% on the day. Other major cryptocurrencies had stabilized: ether traded at US$1,902.88, up 1.4% on the day, XRP at US$1.075, up 1.7%, and Solana at US$73.36.
Asian Semiconductor Stocks Record Steepest Declines of the Year
Samsung Electronics closed 13.4% lower on Tuesday and SK Hynix fell 14.7%, marking their steepest drops of the year. Tokyo Electron shed 11% and Advantest declined 10.1%. Reuters reported Kioxia's fall at 18.3% and MediaTek's at close to 10%.
The selling continued into Wednesday: by early afternoon AEST, SK Hynix was down another 10.5%, Tokyo Electron fell 9.9%, Samsung declined 6.1%, and TSMC dropped 2.4%. Reuters reported the KOSPI fell 10.8% on Tuesday, its biggest one-day decline since March. The PHLX Semiconductor Index fell 4.5% to sit 22.5% below its one-month high.
Crypto Market Liquidations Exceed US$500 Million Over 24 Hours
Market reports citing liquidation trackers put forced closures above US$500 million over 24 hours. Individual tallies ran as high as US$682 million, with one report splitting the figure into US$543 million of longs against US$72 million of shorts.
Analysts Cite AI Buildout Financing and Chinese Competition as Selloff Drivers
Analysts told Reuters the selling reflected concern over how the AI buildout is being financed and over Chinese competition, following reports that Chinese firms are developing domestic deep ultraviolet lithography gear.
StoneX's Matt Simpson stated, "We seem to be at the despair part of the selloff, where tech investors are rushing for the exit." Kiwoom Securities analyst Han Ji-young said the lithography reports had "reignited concerns" about Chinese memory makers expanding capacity.
Reuters also listed a strong market debut by Chinese memory maker CXMT and questions over Nvidia financing an OpenAI data-centre project among the pressures on sentiment.
FAQ
What caused Bitcoin to drop to US$62,785?
Bitcoin dropped to a 24-hour low of US$62,785 as Asian semiconductor stocks slid for a second consecutive session, with Samsung Electronics closing down 13.4% on Tuesday and SK Hynix falling 14.7%. Analysts attributed the broader selloff to concerns over AI infrastructure financing and reports of Chinese firms developing domestic deep ultraviolet lithography equipment.
How much were crypto liquidations over 24 hours?
Market reports citing liquidation trackers put forced closures above US$500 million over 24 hours, with individual tallies running as high as US$682 million. One report split the figure into US$543 million of longs against US$72 million of shorts.
What did analysts say about the semiconductor stock declines?
Analysts told Reuters the selling reflected concern over how the AI buildout is being financed and over Chinese competition. Kiwoom Securities analyst Han Ji-young said reports of Chinese firms developing domestic lithography equipment had "reignited concerns" about Chinese memory makers expanding capacity.
