Bitcoin retreated back to the $62,000 band as the recovery attempt towards $65,000 weakened. BTC, which rose slightly above its lowest level during the day, was traded around $ 62,500 in the latest data, while its 24-hour loss was 4%. The retreat in crypto assets was accompanied by sharp sales in chip stocks and Asian stock markets.
Simultaneous selling pressure in the markets
Cryptocurrency-related stocks also lost ground, but offset some of the deeper declines on the day. Strategy shares fell 2.1% and Coinbase shares fell 1.9%. The increase in the cost of protecting investors against downside risks indicated that the uneasiness in the markets was getting stronger. As one of the largest US-based cryptocurrency exchanges, Coinbase is closely monitored in the corporate and individual transaction flow of the sector.
Volatility expectations also increased in the options market. According to Volmex data, Bitcoin’s 30-day implied volatility index BVIV increased by approximately 10% to 46.5. The VIX index, which monitors the expected fluctuation in the US stock market, increased by 16.5% and reached 20.0, reaching the highest level in recent weeks.
Mini dictionary: Implied volatility refers to the expected price fluctuation reflected in option prices. BVIV is an indicator that measures how sharply the market expects Bitcoin to move in the short term.
Chip stocks increase pressure in Asia
The hardest hit in overnight transactions was seen in the South Korean market. While the Kospi index fell by 10%, SK Hynix and Samsung Electronics shares fell by over 10%. The selling wave also spread to exchange-traded funds in the region. iShares China Large Cap ETF lost as much as 2% on the day, testing its lowest level in the last 52 weeks. At its intra-session low, this fund remained 22% below its 52-week high.
The Hong Kong-focused iShares MSCI Hong Kong ETF fell less than 1% on Tuesday, but was down nearly 15% from its 52-week high at the intra-session low. The iShares MSCI South Korea ETF, which tracks South Korea, fell about 9% and was about 13% below its 52-week high at the day’s low. iShares MSCI Taiwan ETF, which tracks Taiwan, also attracted attention with a 5% loss.
| Presence | intraday change | 52 weeks distance from top |
|---|---|---|
| FXI | down to 2% | down 22% |
| EWH | decrease of less than 1% | down 15% |
| EWY | Approximately 9% decrease | Down about 13% |
| EWT | 5% decrease | down 6.5% |
In the analysis, it was noted that the weight in these markets was largely concentrated in semiconductor companies, which increased the sales pressure. SK Hynix and Samsung Electronics have a decisive weight in the South Korean indices, and Taiwan Semiconductor Manufacturing Company has a decisive weight in the Taiwanese side.
US technology stocks also fell
US futures indices also showed a weak outlook before the opening. The Nasdaq 100 futures index fell 2.6% and the S&P 500 futures index fell 1.2%. Memory chip maker Micron Technology lost more than 7% after a record close on Monday. When the session opened, S&P 500 decreased by 1% and Nasdaq Composite decreased by 1.5%, while the Dow Jones index remained almost flat.
The pressure on technology stocks was felt the day before. The Nasdaq Composite fell 1.3% on Monday, while Alphabet fell 5%, making it the biggest weight on the index. More limited movements in some major companies such as Microsoft and Amazon on Tuesday contributed to the recovery of the main indexes from intraday lows. In contrast, weakness on the semiconductor side continued; SanDisk fell 12%, Seagate Technology fell more than 7%, and Qualcomm fell 9%.
Iran has fully agreed to the highest level of nuclear inspections going forward. Based on this and other significant concessions made by Iran, I have allowed the Strait of Hormuz to remain open, but all ships will remain in place to reinstate the naval blockade if necessary.
Trump’s statement did not stop sales
The selling trend in the markets continued despite US President Donald Trump’s statement aimed at calming concerns about oil transportation in the Strait of Hormuz. Trump stated that Iran has accepted long-term nuclear inspections and that traffic in the strait will not be blocked. On the other hand, investors’ exit from risky assets continued throughout the day.
In the same period, significant declines were also observed in technology-focused funds. Technology Select Sector SPDR Fund fell 3% and VanEck Semiconductor ETF fell 6%. This broad weakness in the market showed that Bitcoin’s decline was considered part of a broader risk-off movement and not just crypto-specific.
