Bitcoin Retreats to $63,200 as Kospi Sinks 10%, Spurring Risk Aversion Across Asia
Summary
- Bitcoin fell about 2.7% after the U.S. stock market closed, sliding to around $63,200.
- South Korea’s Kospi index plunged 10% and is now down 25% from its mid-June peak, spreading risk aversion across Asian markets.
- This Wednesday and Thursday are likely to be the most volatile stretch for the repricing of U.S. rates, with the Fed’s rate decision and the release of PCE and GDP data due this week.
Forecast Trend Report by Period
Bitcoin came under pressure after the U.S. stock market closed, while South Korea’s Kospi index sank 10%, spreading risk aversion across Asian markets.
CoinDesk reported on July 28 that Bitcoin fell about 2.7% to around $63,200 from near $65,000 after the U.S. market close. Major altcoins including Ether, XRP and Solana also declined.
South Korea’s Kospi dropped 10% on the day, touching its lowest level since mid-April. The benchmark has now fallen 25% from its mid-June peak. Heavyweight chip stocks including Samsung Electronics and SK Hynix led the decline. InvestingLive, an investment media outlet, said the market is turning away from semiconductor companies, which had been the main engine of Korea’s stock-market rally.
Analysts at Bitfinex said Bitcoin tends to trade in tandem with equities when market stress is driven by macroeconomic or interest-rate factors. It decouples when the trigger is company-specific. In the current market, they added, earnings and debates over capital spending are the main drivers, making the correlation between Bitcoin and stocks look overstated.
Separately, the U.S. Senate postponed a vote on the CLARITY Act, a digital-asset market structure bill, as lawmakers took up Russia sanctions legislation. That makes passage before Congress begins recess on Aug. 8 less likely.
Dessislava Ianeva, an analyst at Nexo, said the Federal Reserve’s rate decision is due Wednesday, followed Thursday by core personal consumption expenditures and gross domestic product data. Wednesday and Thursday will likely be the most volatile stretch of the week for the repricing of U.S. interest rates.
