BITCOIN OUTPERFORMS AS AI SELLOFF WEIGHS ON GLOBAL MARKETS
Yesterday’s trading session delivered an unusual divergence across financial markets. While U.S. equities finished lower amid renewed pressure on AI and semiconductor stocks, Bitcoin continued to show resilience, climbing back above $61K.
The move came despite persistent institutional selling through spot ETFs and growing uncertainty surrounding the global technology sector.
At the same time, improving sentiment around U.S.-Iran negotiations helped ease fears of an immediate escalation in the Middle East, supporting risk assets during the U.S. session. The result was a market where crypto outperformed traditional equities, highlighting that investors are beginning to differentiate between sectors rather than treating all risk assets the same.
CHEAPER AI IS CHANGING THE CHIP TRADE
The biggest driver behind yesterday’s weakness in U.S. equities wasn’t economic data, it was AI. Reports revealed that OpenAI has developed software optimizations capable of reducing the cost of running ChatGPT by more than 50%.
For years, one of the biggest assumptions behind the AI trade has been simple: More AI adoption meant more GPUs. This breakthrough challenges that narrative. If AI models can serve significantly more users using the same hardware, future demand for additional chips may not grow as quickly as investors previously expected.
The news triggered broad selling across semiconductor stocks as markets reassessed long-term infrastructure demand. However, the development isn’t necessarily bearish for AI itself. Lower operating costs could dramatically accelerate adoption, rewarding companies capable of delivering AI services more efficiently rather than simply owning the largest amount of hardware.
THE AI SELLOFF SPREADS TO SOUTH KOREA
The weakness in AI stocks quickly spread beyond the United States. South Korea’s KOSPI plunged nearly 8%, led by heavy selling in semiconductor giants SK Hynix and Samsung Electronics, which together erased roughly $290 billion in market value.
The decline became severe enough for the Korea Exchange to temporarily suspend program selling after futures triggered a market-wide sidecar mechanism.
Foreign investors sold approximately ₩4.4 trillion ($2.8 billion) worth of Korean equities, while retail investors stepped in to buy the dip. The selloff reflects growing concerns that AI infrastructure spending may have outpaced actual demand following OpenAI’s efficiency breakthrough and Meta’s plans to monetize excess computing capacity.
DIPLOMATIC PROGRESS EASES GEOPOLITICAL CONCERNS
Markets also received encouraging news from the Middle East. Reports suggest that U.S. and Iranian officials reached a preliminary understanding during talks in Doha regarding the release of frozen Iranian funds.
While no formal agreement has been announced, the development reduced immediate concerns about further escalation in the region. Lower geopolitical risk also eases fears of
disruptions through the Strait of Hormuz, reducing pressure on oil prices and inflation expectations.
RECORD U.S. OIL PRODUCTION CONTINUES TO WEIGH ON CRUDE
While geopolitical risks remain elevated, supply continues moving in the opposite direction. Total U.S. crude oil and petroleum production reached another all-time high of 21.84 million barrels per day in April.
Crude oil production alone climbed to a record 13.93 million barrels per day. Since the 2008 Financial Crisis, total U.S. petroleum production has quadrupled, reinforcing America’s position as the world’s largest oil producer.
CL has now closed below its 200-day moving average for seven consecutive trading sessions, its longest stretch below this key trend indicator since January. On LTF it continues trading below both its 50-period and 200-period moving averages, keeping the short-term trend bearish.
Support remains near $67.6. A break below this level could extend losses toward $66.8.
For buyers to regain control, crude first needs to reclaim the $69.9-$70.3.
SILVER WAS THE WORST-PERFORMING MAJOR ASSET IN H1
Silver finished the first half of 2026 down roughly 18%, making it the weakest-performing major financial asset according to Deutsche Bank. The decline reflects higher-for-longer interest rate expectations, a stronger U.S. dollar, and reduced investor demand for precious metals.
Despite the weak performance, the technical picture has begun to improve. XAG has reclaimed both its 50-period and 200-period moving averages and is now consolidating above them.
This suggests the metal may be forming a base after months of sustained weakness. If buyers continue defending current levels, attention shifts toward resistance around $61.1. Holding above the moving averages would strengthen the probability of a broader recovery.
BITCOIN HOLDS FIRM DESPITE ETF OUTFLOWS
Bitcoin continues showing resilience despite sustained institutional selling. Spot Bitcoin ETFs have now recorded 10 consecutive trading days of net outflows, with more than $2.7 billion leaving the products during that period.
Despite those outflows, BTC has recovered from below $58K and is once again testing the $61K region. This suggests buying demand from outside U.S. spot ETFs has been sufficient to absorb institutional selling pressure.
BITCOIN LIQUIDITY UPDATE
BTC has already swept a significant amount of liquidity above $61K, triggering another wave of short liquidations.
Over the last 24 hours:
- 123,450 traders were liquidated.
- Total liquidations: $430 million.
- Short liquidations: $264 million.
- Long liquidations: $166 million.
The liquidation heatmap shows another major cluster of short liquidity remains between $61.5K and $62K. A successful push into that region could trigger another round of forced buying and accelerate the rally.
On the downside, the largest liquidity cluster now sits near $59.5K, making it the most important support level if the market retraces.
HYPERLIQUID CONTINUES TO DOMINATE PERPETUAL DEXS
Competition among perpetual DEXs remained intense throughout June.
Monthly trading volumes:
- Hyperliquid: $254B
- Aster: $61.2B
- Lighter: $44.1B
- GRVT: $39.4B
The data highlights Hyperliquid’s continued dominance while showing that newer platforms continue gaining market share. HYPE is consolidating near a critical support zone around $63-$64 while trading just below its major moving averages.
If buyers reclaim these averages, the next upside target sits near $75.3. Failure to hold current support would shift focus toward $53.3.
LIGHTER EXTENDS ITS BREAKOUT
LIT is one of today’s strongest performers, rising more than 20%. The rally follows growing optimism around the protocol’s transition from token buybacks to permanent burns and its position as the third-largest perpetual DEX by June trading volume.
It has broken decisively above $2.01, confirming the continuation of its uptrend. The next major upside target sits near $2.33. As long as price remains above the recent breakout zone around $2.00, buyers remain in control.
PENDLE REACHES A DECISION POINT
It has successfully broken out of its recent consolidation and reclaimed both its 100 and 200-period moving averages.
However, price is now testing an important resistance zone around $1.50-$1.52.
Scenario 1: A confirmed breakout above resistance would likely target $1.71, followed by $2.00.
Scenario 2: If sellers defend the current resistance, a pullback toward the $1.35-$1.32 support zone becomes increasingly likely.
As long as that area holds, the broader recovery remains intact.
ETHENA TESTS MAJOR RESISTANCE
ENA is also among today’s stronger performers but has now reached an important resistance zone. A successful breakout would confirm continuation of the recovery and open the door for another move higher.
If rejected, a healthy retracement toward the recent breakout area would still keep the bullish structure intact, provided support continues to hold.
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