Bitcoin Breaks Below $63,000, Hits 10-Day Low as AI-Linked Tech Rout Weighs on Risk Assets

ME News reported that on July 29 (UTC+8), U.S. technology shares faced renewed pressure after a sharp drop in Asian semiconductor stocks. After Tuesday's U.S. market open, Bitcoin briefly slid below $63,000, breaking a key support level and touching its lowest point in nearly 10 days. Market data suggests the move was tied to a broader global tech selloff. The slump in Asia's semiconductor sector set off a risk-asset pullback that carried into U.S. trading, weighing on crypto. The correction in tech stocks has been driven largely by growing investor scrutiny of returns on AI infrastructure spending. Markets are increasingly questioning how long hyperscale cloud companies can keep raising capital expenditures and whether massive AI outlays will produce adequate returns. Alphabet, Microsoft, Amazon, and Meta Platforms are currently guiding to combined 2026 capex of about $725–730 billion, with Wall Street expecting the total could climb to $900 billion by 2027. Alphabet drew particular attention after reporting its first negative free cash flow in the second quarter, with cash outflows of $5.9 billion. The company said its cloud business grew 82% on stronger AI computing demand, but the heavy-investment model has amplified market concerns. In crypto markets, Bitcoin's decline triggered broad liquidations of long positions. Data show more than $510 million in long positions were wiped out across the crypto market over the past 24 hours. Analysts said a break below $64,700 could spark another cascade of long liquidations, with notable long-side liquidity concentrated beneath that level. On the other side, sizable short liquidation pressure is seen between $65,800 and $66,200. Attention is now turning to upcoming earnings from AI leaders and technology firms' capex plans, as investors reassess whether the AI investment cycle can sustain its momentum. (Source: PANews)