Bitcoin slumped to about $63,150 on July 28, slipping below the $64,000 mark for the third time in just days. This drop erased nearly $100 million in leveraged bets in a single hour, sparking sharp fallout across altcoins. Ethereum slid 3.5% to roughly $1,872, XRP tumbled 4.4% near $1.05, and Solana lost over 4%, reflecting a widespread market retreat.
Chain Reaction from China's Lithography Breakthrough
The selloff wasn’t sparked by crypto itself but stemmed from a revelation about China’s semiconductor industry. A subscription-only report disclosed that a Shanghai-based manufacturer began mass-producing immersion deep ultraviolet lithography machines. Delivered to major chipmakers like SMIC and Hua Hong Semiconductor, these machines could curtail China’s reliance on European suppliers such as ASML, which had dominated this market with advanced EUV systems.
Though volumes are initially modest just a handful of units planned for 2026 the strategic implications are massive. With export restrictions blocking China's access to cutting-edge tech, this domestic production threatens to slash ASML’s important revenue from China. The ripple effect hit global tech stocks first: ASML shares declined 6-8%, followed by plunges in Applied Materials and KLA. Asia’s markets tumbled harder, culminating in South Korea’s Kospi plunging 10.8%, triggering a circuit breaker and dragging Samsung shares 13% down.
This turmoil landed at crypto’s doorstep just before the Federal Reserve’s key policy decision, a moment when traders had been holding steady. Bitcoin dominance remains above 56%, signaling investors are consolidating into Bitcoin rather than shifting toward altcoins amidst the selloff. The total crypto market value now hovers near $2.16 trillion.
This is informational content and not financial advice.
