Bitcoin fell to $63,408 early on July 29, sliding 2.8% over 24 hours as global risk sentiment deteriorated ahead of the Federal Reserve’s policy decision. The move erased much of the prior session’s rebound above $65,000 and pushed the largest cryptocurrency back into a fragile technical zone.
The drop was not driven by a bitcoin-specific catalyst. Instead, a sharp selloff in South Korean equities, including a marketwide circuit breaker after the Kospi plunged 10.84%, combined with macro uncertainty around US rates to pressure high-beta assets across markets.
Derivatives amplified the decline. More than $600 million in crypto positions were liquidated in 24 hours, and 87.88% of those forced closures were long bets, underscoring how quickly leverage turned a risk-off move into a broader crypto washout.
Key Facts
- Bitcoin traded at $63,408 at 7:30 a.m. Eastern on July 29, down about $1,950 from the same time a day earlier.
- The intraday trading range ran from roughly $63,055 to $65,546, a swing of $2,491.
- More than $600 million in crypto positions were liquidated over 24 hours, with 87.88% of the total on the long side.
- The Kospi fell 10.84% to 6,023.66, triggering a marketwide circuit breaker and intensifying pressure on risk assets.
- Bitcoin’s market capitalization stood near $1.26 trillion, while 24-hour trading volume reached about $27.3 billion.
Bitcoin price drop
The latest Bitcoin price drop highlights how tightly digital assets remain linked to broader macro and equity-market stress. After a brief recovery on July 28, sentiment reversed during the Asian trading session as semiconductor-related selling hit Seoul and spread across regional markets. Bitcoin, which has increasingly traded like a leveraged extension of technology risk, moved lower alongside equities rather than on any change to its own fundamentals.
That distinction matters. There was no meaningful shift to bitcoin’s supply schedule, network activity, or spot ETF structure during the session. What changed was the price investors were willing to pay for risk. Ether fell to about $1,872, down 3.52%, while smaller tokens also weakened, suggesting a broad de-risking move rather than an isolated bitcoin event.
Investors are also navigating two immediate catalysts: the Federal Open Market Committee decision on July 30 and the narrowing legislative window for US crypto market-structure reform before the Senate’s August recess. With both events carrying uncertainty, traders appear reluctant to add fresh risk after several failed attempts by bitcoin to hold above $64,000 in late July.
Bitcoin is not reacting to a crypto-specific shock so much as a macro jolt hitting a market that was carrying too much long leverage.
Why liquidations mattered more than headlines
The mechanics of the selloff were visible in derivatives markets. When nearly 88% of liquidations are long positions, the decline tends to feed on itself. As price breaks support, exchanges force leveraged traders to close, sending more sell orders into the market and triggering the next wave of stop-outs.
That appears to have happened as bitcoin slipped through the $64,000 level. Roughly $100 million in positions were liquidated within a single hour, turning what might have been a contained pullback into a sharper flush. In that sense, leverage accelerated the move, even if it did not cause the original break in sentiment.
Implications for Investors
For investors, the immediate focus is whether this reset in leverage reduces near-term downside risk or signals that a deeper correction is still unfolding. Bitcoin is now below several widely watched moving averages, including the 20-day level near $64,223 and the 50-day near $64,916. That leaves the chart vulnerable unless buyers can quickly reclaim those zones.
Support is concentrated in the low-$63,000 area and then closer to $61,000, a level that has repeatedly attracted buyers during 2026. A sustained break below that region would raise the odds of a retest of the June low near $57,700. On the upside, resistance is layered between roughly $64,223 and $67,100, meaning any rebound will need to absorb significant overhead supply.
Longer term, ETF flows, US policy clarity, and the Fed’s tone remain critical watch-points. Spot bitcoin funds have stabilized after a weak stretch, but inflows remain modest and uneven. If the Fed signals higher-for-longer rates or lawmakers fail to advance market-structure legislation, institutional participation may remain restrained. For portfolio managers, that argues for disciplined sizing, close attention to cross-asset signals, and caution around event-driven volatility in both crypto and technology shares.
The next 48 hours could define whether July’s weakness becomes another short-lived liquidation event or the start of a broader move lower. Bitcoin remains highly sensitive to macro policy, risk appetite, and the behavior of leveraged traders.