Relay_Station / Zone_39
MARKET
28.07.2026
Bitcoin Plunges Below $63,000 Amid $100M Liquidations, KOSPI Rout
The abrupt downturn in Bitcoin’s value coincided with a severe selloff in global equity markets, particularly in Asia. South Korea’s benchmark KOSPI index plummeted by 8.02%, shedding 542.24 points to close at 6,213.51. This triggered the index’s eighth circuit breaker of 2026, driven primarily by a broader slump in U.S. semiconductor stocks. The correlation between crypto assets, especially Bitcoin, and high-beta technology stocks has strengthened throughout the year, making digital assets susceptible to wider risk-off movements.
Investors are grappling with heightened caution ahead of the Federal Reserve’s two-day Federal Open Market Committee (FOMC) meeting, which commenced today, July 28. The market widely anticipates the Fed, under Chair Kevin Warsh, to maintain the federal funds rate within its current target range of 3.50%–3.75% for the fourth consecutive meeting. However, any hawkish signals regarding future monetary policy or adjustments to rate-cut timelines could further dampen appetite for speculative assets like cryptocurrencies.
The immediate trigger for the cascading liquidations was insufficient buying momentum above the $65,000 resistance level, combined with profit-taking as Bitcoin breached the $64,000 support. Data indicates that approximately $100 million in leveraged long positions were wiped out in an accelerated fashion, exceeding the scale and speed of two prior liquidation events earlier in the week, which saw $87 million and $75 million liquidated, respectively. These forced sales exacerbated the downward pressure in already thin trading conditions.
Institutional demand for spot Bitcoin exchange-traded funds (ETFs) has shown signs of weakening. After a brief period of net inflows, several spot Bitcoin ETFs recorded net outflows, signaling a reduction in fresh capital entering the market. For instance, BlackRock’s IBIT fund saw a significant outflow following a period of selling, contributing to a cumulative outflow of over $465 million from U.S. spot Bitcoin ETFs over two sessions. This reversal in institutional sentiment further complicates Bitcoin’s recovery prospects.
The broader macroeconomic environment continues to present headwinds. The U.S. dollar index (DXY) remains near a four-week high at 101.50, and rising U.S. Treasury yields make interest-bearing traditional assets more attractive to investors seeking less volatility. With Bitcoin offering no inherent yield, demand can falter when alternative, lower-risk investments become more appealing. Global stocks, as reported by Reuters, have fallen to a one-month low, reflecting a widespread lower appetite for risk that extends beyond the digital asset space.
While Bitcoin bore the brunt of the market's contraction, other major cryptocurrencies also experienced significant declines. Ethereum (ETH) dropped approximately 3.52% to trade around $1,872.11, while XRP fell roughly 4.44% to $1.05, breaking a closely watched technical support level. Solana (SOL) saw a 4.08% decrease, trading at $73.08. These broad-based losses underscore the prevailing risk-off sentiment and the interconnectedness of the crypto market with global financial conditions.
The market now pivots its focus squarely on the outcome of the Federal Reserve's policy meeting and the subsequent press conference from Chair Warsh. Will the Fed’s communication provide the clarity needed to stabilize investor confidence, or will a more hawkish stance deepen the current correction across digital assets?
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