Bitcoin Slips Under $77,000 Amid Semiconductor Sell-Off and Upcoming U.S. Midterms

Summary

• Bitcoin slid by 2 percent to slightly below $77,000 during Tuesday’s morning hours in Asia, erasing the previous day’s recovery as the broader cryptocurrency market faced declines.
• A worsening downturn in American semiconductor stocks negatively impacted Asian equities, causing South Korea’s Kospi index to drop over 3 percent following the Nasdaq 100’s entry into a correction phase.
• Market participants awaited the outcomes of the United States midterm elections, which were anticipated to start rolling in just as Asian trading sessions opened on Wednesday.

Bitcoin declined by 2% to trade just under $77,000 during the early Asian hours on Tuesday, erasing Monday’s recovery as a worsening sell-off in U.S. semiconductor shares dragged down equities in Asia just hours before voters headed to the polls for the midterm elections.

This movement pushes bitcoin below the approximately $77,600 level it touched late Sunday before purchasers stepped in to prompt a temporary rebound.

ZEC suffered the steepest losses, plunging nearly 10% to roughly $1,140, marking a dramatic reversal for a digital asset that had outperformed other majors on Monday. HYPE decreased by 5% to approximately $84, while SOL declined 3% to near $92. BNB shed 2% to fall under $700, and both ether and DOGE dropped by about 2%, leaving ether hovering slightly above $2,250. XRP remained virtually unchanged at $1.25, whereas TRX stood out as the sole major asset in positive territory, gaining around 2% based on figures from CoinDesk.

The financial pressure originated on Wall Street. An index tracking American chip manufacturers extended its three-day slide to 12%, bringing the Nasdaq 100 down by 10% from its recent peak. Market participants define a decline of that magnitude from a recent high as a market correction. Meanwhile, the S&P 500 pulled back by 0.5%.

South Korea’s technology-focused Kospi fell in excess of 3%, and the MSCI Asia Pacific Index decreased by close to 1%. Japanese financial markets remained closed in observance of a holiday. Chinese equities retreated even after the country’s central bank announced it would encourage financial institutions to increase their utilization of support measures for the stock market.

The yuan broke a 13-day winning streak—its longest upward run since 1996—following instructions from the People’s Bank of China requiring commercial lenders to maintain higher foreign currency reserve ratios.

Crude oil prices tumbled sharply on growing optimism that the conflict in Iran was nearing a resolution, though this development provided little support to overall market sentiment.

American citizens participate in voting on Tuesday, with the earliest election returns expected to emerge as the Asian trading day commences on Wednesday.

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