Bitcoin Withstands Nasdaq's 10% Plunge…Is Capital Shifting to Virtual Assets?

▲ Bitcoin (BTC), Nasdaq (NASDAQ)/ChatGPT generated image ©

Although the Nasdaq 100 index has fallen more than 10% from its peak, entering a technical correction, the virtual asset market is showing unexpected resilience with Bitcoin (BTC) recovering to $64,000.

According to investment media FXStreet on July 29 (local time), the total market capitalization of virtual assets fell to $2.14 trillion on Tuesday but rebounded from this level, which has acted as a support line several times over the past three weeks. The market maintaining above the 50-day moving average was seen as a sign of buying power and a short-term shift in investment priorities.

Among major assets in the past 24 hours, Cardano (ADA) rose 4.8%, Uniswap (UNI) rose 3.1%, and XRP (Ripple) rose 3%. In contrast, Immutable (IMX) fell 5.3%, Official Trump (TRUMP) fell 4.6%, and Theta Network (THETA) fell 3.7%. While investor interest shifted from virtual assets to artificial intelligence (AI) related stocks since the beginning of the year, the relative resilience of virtual assets has been highlighted during the recent tech stock correction.

Bitcoin, like a week ago, dipped below $63,000 before new buying interest pushed it back up to $64,300. The media analyzed that although the current support level is lower than in February-April, overall buying dominance is maintained in this range. Long-term large investors, largely unaffected by the semiconductor stock sell-off, are absorbing the market, and there is a possibility that profit-taking funds from the stock market are flowing into virtual assets.

Mixed trends were observed in the corporate and stablecoin markets. Strive, one of the top 10 listed companies by Bitcoin holdings, purchased 79 BTC worth $5.2 million last week at an average price of $65,700 per coin, increasing its total holdings to 20,000 BTC. According to CryptoQuant, USDC inflows to exchanges exceeded outflows for the first time in about two months, and Visa estimated that USDC accounted for approximately 70% of all transactions in the first half of 2026. Conversely, according to DeFiLlama, the total market capitalization of stablecoins decreased by more than $10 billion from its May high to $310 billion, marking the largest monthly decrease since the Terra collapse in May 2022.

Major news also continued in the regulatory and technology sectors. The New York State Attorney General's Office criticized the U.S. cryptocurrency market structure bill, the Clarity Act, arguing that transferring digital asset oversight authority to the U.S. Commodity Futures Trading Commission (CFTC) could weaken state market oversight and fraud investigation powers. Zcash (ZEC) developers applied the Ironwood update to the mainnet to fix a critical vulnerability that allowed the undetected creation of fake ZEC. However, if the stock market sell-off spreads to a broader risk-off movement, virtual assets may also find it difficult to maintain current support levels, and the U.S. Federal Reserve's (Fed) interest rate decisions and statements were identified as key variables that could increase future volatility.

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