Bitcoin traded near $64,000 on Wednesday, climbing roughly 1% even as Asian equity markets suffered one of their steepest two-day sell-offs of the year — led by a collapse in semiconductor stocks that has begun calling the entire AI trade into question.
The divergence marks the second time in five trading sessions that crypto has shrugged off a sharp unwind in technology shares, raising questions about whether the tight correlation between digital assets and AI-linked equities that defined July is finally breaking down.
South Korea's benchmark Kospi plummeted 11% on Wednesday, following a similar decline on Tuesday, putting the index on course for a record two-day decline. Memory chip giant SK Hynix fell approximately 17% despite reporting a 557% surge in quarterly profit — a figure that still managed to miss sky-high analyst expectations. Samsung dropped 12% ahead of its own earnings release on Thursday. The MSCI Asia Pacific Index fell 2% to its lowest level since mid-April, and Nasdaq 100 futures extended their losing streak to five sessions.
Crypto Holds the Line
Major cryptocurrencies moved in the opposite direction. Ether rose 1% to about $1,899, XRP added 2% to $1.07, BNB gained to $567, and solana held at $73. Hyperliquid's HYPE token was the only notable laggard, declining 3%.
The resilience is notable because crypto has spent much of July moving in lockstep with technology stocks — rising when semiconductor shares rallied and falling when they slipped. That link has now failed twice in quick succession. Bitcoin barely moved through last week's sell-off in U.S. megacap tech stocks, and it is higher through the current Asian chip rout.
Two instances constitute a pattern worth watching rather than a proven break. Bitcoin miners themselves remain tied to AI data-center demand, and the broader macro environment remains uncertain. But the correlation that defined the month appears to be loosening on the downside.
Fed Decision in Focus
The Federal Reserve delivers its rate decision later on Wednesday, and it arrives at a moment of unusual uncertainty. Markets are pricing roughly a 15% probability of a rate hike — an outcome that would surprise nearly everyone. Citadel Securities and UBS are among the firms flagging the risk of a hike under Fed Chair Kevin Warsh.
A hold is the consensus expectation, but even a dovish tone could benefit Bitcoin. Analysts at several major desks have noted that anything "remotely dovish" from the Fed could serve as a positive catalyst for crypto, particularly given the asset class's relatively lighter exposure to the AI-driven valuation concerns pressuring technology stocks.
Beyond the Fed, traders are also watching core PCE inflation data and second-quarter GDP figures, both due later this week, alongside another round of megacap technology earnings.
The Senate's decision to delay the Clarity Act — the market structure bill that would establish a comprehensive regulatory framework for U.S. crypto — added a brief bout of uncertainty on Monday, pushing Bitcoin briefly below $63,000 before it recovered. The bill's timeline has since tightened, with the Senate's summer recess beginning August 8.
What Comes Next
The key question for markets is whether Bitcoin's decoupling from tech stocks will hold. If the Fed delivers a hold or dovish guidance, crypto could be positioned to extend its gains independently of the volatility in semiconductor and AI-linked equities. A surprise hike, however, would test the resilience of an asset that has spent the last month increasingly marching to its own beat.