Bitcoin Retracts from $65,000: 10% Crash in Asia and U.S. Decision Shake the Market
Bitcoin fell from the $65,000 level to $63,200 after the close of U.S. markets, while a sharp decline in the South Korean stock market and the postponement of legislative regulations reduced risk appetite in the market.
The cryptocurrency market faced new selling pressure following the close of U.S. stock exchanges. Bitcoin (BTC) quickly moved away from the $65,000 threshold, retreating to the $63,200 level, which led to a 2.7% loss in value across the broader market. Negative signals from Asian markets, especially when combined with a historic 10% crash in South Korea’s Kospi index, strengthened the trend toward risk aversion among investors.
This wave of decline was not limited to Bitcoin; assets such as Ethereum (ETH), XRP (XRP), and Solana (SOL) were also directly affected by this pullback. Another development increasing market pessimism was the U.S. Senate’s postponement of the legislative regulation known as the CLARITY Act, which was expected to pave the way for institutional purchases. The prioritization of a sanctions bill against Russia significantly reduced the likelihood of the crypto law being voted on before the legislative recess on August 8.
Global Market Volatility and Bitcoin’s Effort to Decouple
Losses in South Korean tech giants Samsung and SK Hynix pushed the Kospi index to its lowest level since mid-April. However, Bitfinex analysts argue that Bitcoin may decouple from such stock-oriented crises over time. According to analysts, if market stress stems only from specific sectors, Bitcoin’s link with stocks may weaken; however, if the pressure is driven by macroeconomics and interest rates, the correlation is expected to continue.
The coming days represent a very critical turning point for crypto assets. Nexo analyst Dessislava Ianeva emphasizes that the Fed interest rate decision to be announced on Wednesday, along with PCE (Personal Consumption Expenditures) and GDP data coming on Thursday, will create the highest volatility window of the week. In the scenarios ahead for Bitcoin, it is observed that the decline could deepen if macro pressures continue, but a recovery toward the $65,000 levels is possible if the data comes in positive.