Bitcoin Retreats to $63,200 as Kospi Plunges 10%, Risk Aversion Spreads Across Asia

Bitcoin came under pressure after the US stock market closed, while South Korea's Kospi index plunged 10%, spreading risk aversion across Asian markets.

CoinDesk reported on July 28 that Bitcoin fell about 2.7% to roughly $63,200 from near $65,000 after the US market close. Major altcoins including Ether, XRP and Solana also declined.

The Kospi sank 10% on the day to its lowest level since mid-April. The index is now down 25% from its mid-June peak. Semiconductor heavyweights Samsung Electronics and SK Hynix led the selloff. InvestingLive said investors are turning away from chipmakers, which had been the main engine of the Korean stock market's bull run.

Bitfinex analysts said Bitcoin tends to trade in line with equities when macroeconomic conditions or interest rates are the main source of stress. It decouples when the trigger is company-specific. In the current market, corporate earnings and debate over capital spending are driving sentiment, they added, suggesting the correlation between Bitcoin and stocks may be overstated in this case.

Separately, the US Senate delayed a vote on the CLARITY Act, a bill on digital-asset market structure, as it handled legislation related to sanctions on Russia. That reduced the chances of passage before Congress begins its recess on Aug. 8.

Dessislava Ianeva, an analyst at Nexo, said the Federal Reserve's rate decision is due Wednesday, followed by core personal consumption expenditures and gross domestic product data on Thursday. She said Wednesday and Thursday will be the week's most volatile stretch for the repricing of US interest-rate expectations.