Live markets: Bitcoin returns to $63,000 as Nasdaq trims large early loss
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Bitcoin experienced a pullback to around $63,000 on July 17, 2026, after briefly reaching $65,000 earlier in the week following softer-than-expected inflation data. This decline coincided with a broad selloff in semiconductor stocks, particularly chipmakers, which are critical to powering AI technology. The weakness in chip stocks dragged risk assets lower globally, with the Nasdaq narrowing its early losses to about 1%. Bitcoin still ended down roughly 2% over 24 hours, and around 2.2% for the week, indicating that the earlier inflation-induced rally had lost momentum.
The semiconductor sector’s downturn raised concerns about whether the large capital expenditures by AI hyperscalers will generate returns sufficient to justify current chipmaker valuations. For example, Taiwan Semiconductor Manufacturing Company (TSMC) recently reported results that failed to ease these doubts, contributing to the sector’s selloff. In Asia, Taiwanese equities entered technical correction territory and major regional indices hit two-month lows, although European markets showed some resilience due to lower tech sector exposure.
Why it matters
Other notable developments included discussions around large-scale AI infrastructure deals, such as Meta potentially renting up to $10 billion in computing power to Anthropic and SpaceX negotiating with the U.S. Department of Defense to provide computing capacity. Despite these AI-related infrastructure deals, crypto-related stocks, especially those with ties to data centers and former bitcoin miners, saw sharp declines, with several falling more than 7%. Additionally, strategic partnerships like Galaxy Digital’s 15-year stadium naming deal with Texas Tech highlight ongoing efforts by crypto firms to build brand presence despite market volatility.
Analysts highlighted that bitcoin’s failure to sustain gains beyond the $65,000 level and its return below the 50-day moving average indicated that the downtrend, present since June, remains intact. Support levels were noted around $61,000 and $59,000, with a lower boundary near $56,000. The market’s trajectory continues to be influenced by macroeconomic factors, including the Federal Reserve’s upcoming July 28-29 meeting and rising oil prices, which could rekindle inflation concerns that weigh on risk assets like bitcoin.