The decline in U.S. tech stocks has dampened investor sentiment across risk assets, leading to a downturn in the cryptocurrency market. Although a drop in international oil prices has eased some geopolitical concerns, increased volatility in the U.S. stock market, particularly among semiconductor stocks like Nvidia, has intensified selling pressure on major cryptocurrencies such as Bitcoin.
According to CoinMarketCap, Bitcoin was trading at $63,770 as of 8 a.m. on July 28, reflecting a 2.19% decrease from the previous day.
The price of Ethereum also fell by 2.31% to $1,893. Binance Coin (BNB) and Solana recorded declines of 1.27% and 2.59%, trading at $566 and $74, respectively. Ripple (XRP) dropped 3.65% to $1.06.
The weakness in the cryptocurrency market is attributed to the adjustment in U.S. tech stocks, which has spread to risk assets more broadly. Recently, Bitcoin has been influenced not only by interest rates and the direction of the dollar but also by trends in AI-related tech stocks.
With Nvidia's stock falling nearly 5%, concerns about the AI investment frenzy have grown, leading to a decline in investor sentiment across risk assets. This has resulted in increased selling pressure in the cryptocurrency market.
As of 8 a.m. on the same day, Bitcoin was trading at approximately 93,101,000 won ($63,731) on the domestic exchange Bithumb, marking a 1.32% decrease from the previous day. The 'Kimchi Premium' was recorded at -0.231%, indicating that the price of Bitcoin traded domestically is lower than that in international markets.
* This article has been translated by AI.
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