Bitcoin and Ethereum remained stable on July 2, despite a selloff in semiconductor stocks, with Bitcoin around $61,400 and Ethereum near $1,700.
On July 2, Bitcoin and Ethereum showed resilience, closing nearly unchanged despite a significant selloff in semiconductor stocks, as reported by Saxo Bank. Bitcoin was trading at around $61,400, while Ethereum was near $1,700.
This stability came amidst a broader market decline, with the Nasdaq Composite dropping 0.8% and the Philadelphia Semiconductor Index suffering a 5.4% fall. The downturn in chipmaker shares was concentrated, as the Dow Jones reached a record high with a 1.1% increase, and the S&P 500 remained largely flat.
Saxo highlighted that the volatility indicators reflected stress specifically in the tech sector; the VIX fell by 2.65% to 16.15, while the Nasdaq VXN rose by 1.05% to 27.98. The semiconductor sector has faced a two-day decline of 11% due to concerns over AI-related valuations. Reuters noted that the bubble risk indicator for the PHLX Semiconductor Sector hit 0.91, indicating potential overvaluation, while the Technology Select Sector indicator was at 0.82.
Asian markets began to rebound on July 3, with the MSCI Asia-Pacific ex-Japan up by 2.2%, the Kospi rising by 5%, and the Nikkei gaining 1.5%. Notably, shares of SK Hynix and Samsung Electronics saw increases of 11.3% and 9.1%, respectively.
The U.S. June employment report was a key macroeconomic highlight, revealing a 57,000 increase in non-farm payrolls and an unemployment rate of 4.2%. Analysts noted that the weak employment figures alleviated some pressure on interest rates, reducing the likelihood of an imminent Federal Reserve rate hike, which contributed to a decline in the dollar.
Following the report, U.S. Treasury bond prices rose, with the yield on two-year notes dropping about 7 basis points to just below 4.14%. Saxo suggested that this scenario reduced pressure on dollar liquidity for Bitcoin and Ethereum, although the crypto market still faced challenges, as U.S. spot Bitcoin and Ethereum ETFs experienced a combined net outflow exceeding $4.5 billion in June.
Mining company stocks diverged sharply from Bitcoin and Ethereum, with significant losses reported. Over the past day, Marathon Digital Holdings fell 7.26%, Riot Platforms dropped 7.72%, CleanSpark declined 7.34%, Cipher Mining saw a 12.26% decrease, and Hut 8 fell by 8.18%. Reports indicate that major Bitcoin miners are increasingly relocating their energy facilities and network infrastructure to support AI and high-performance computing, with SBI Crypto announcing the closure of its Bitcoin mining pool.
It is important to note that Bitcoin experienced a decline of approximately 20% in June, marking its worst monthly performance in four years, dropping below the $60,000 mark.
