Bitcoin edged higher on Wednesday, trading near $64,000 as investors stayed cautious ahead of the U.S. Federal Reserve’s policy decision. The cryptocurrency rose about 1% to $64,075.5 by early U.S. hours, recovering from a slide below $63,000 the prior session. It demonstrated relative strength even as AI-linked technology stocks faced renewed pressure, including a sharp drop in South Korean equities.
Bitcoin Rises 1% to $64K as KOSPI Drops 12%, SK Hynix Falls 20% – Key Developments
- Bitcoin last traded 1% higher at $64,075.5 (as of 01:56 ET / 05:56 GMT), holding near the $64,000 level after dipping under $63,000 previously.
- South Korea’s KOSPI index slid more than 12% amid intensified selling in AI-linked chipmakers.
- SK Hynix shares tumbled as much as 20% (later sessions showed declines of around 9–12%) after reporting record second-quarter results that still missed elevated expectations. Operating profit surged 557% year-over-year to 60.54 trillion won (about $41–42 billion), with revenue up 257% to 79.32 trillion won, but both figures fell short of consensus estimates near 64 trillion won and 84 trillion won respectively. Operating margin hit 76%.
- Most major altcoins advanced in range-bound trading: Ethereum rose 1.5% to $1,912.92; XRP climbed 2.6% to $1.0858; Solana edged up 0.6%; Cardano jumped 4.5%; and Dogecoin ticked higher by 0.3%.
- U.S. spot Bitcoin ETFs showed mixed institutional demand in July, with modest net inflows overall despite recent sessions of outflows (including multi-hundred-million-dollar outflows in late July).
Fed Odds at 68% Hold vs 32% Hike Keep Bitcoin Steady Amid AI Selloff
Trading remained subdued due to uncertainty surrounding the Federal Reserve’s decision. CME FedWatch data indicated roughly a 68% probability of rates remaining unchanged and about a 32% chance of a 25-basis-point hike. A more hawkish outcome could pressure risk assets including cryptocurrencies, while a dovish signal might support demand for digital assets.
Bitcoin has tracked broader risk assets more closely over the past year, yet its declines proved more contained than those in semiconductor and AI shares this week. Investors have been reassessing lofty valuations in the AI sector amid concerns over the sustainability of infrastructure spending, rising memory prices potentially curbing demand, and leverage in the chip space. SK Hynix’s results, while record-breaking and driven by AI server memory demand, failed to meet sky-high expectations, amplifying the selloff that spilled into Asian markets. Bitcoin’s relative firmness stood out against this backdrop.
Bitcoin Rebounds From $58K Lows, Still 50% Below $126K Peak Amid AI Chip Rout
Bitcoin has recovered from early-July lows near $58,000–$59,000 (a multi-month trough) and briefly tested levels above $65,000–$66,000 earlier in the month before consolidating. It remains well below its late-2025 peak near $126,000. The asset has increasingly behaved like a risk asset sensitive to interest-rate expectations and equity market sentiment.
The AI boom that propelled memory-chip makers such as SK Hynix (a key high-bandwidth memory supplier for Nvidia) and Samsung earlier in the year has faced growing skepticism. Concerns include the ability of hyperscalers to fund massive AI data-center investments, potential demand moderation if prices stay elevated, and volatility from leveraged products in the Korean market. The KOSPI, heavily weighted toward chipmakers, has experienced sharp swings, with SK Hynix alone losing hundreds of billions in market value from its June highs.
Institutional Bitcoin demand via U.S. spot ETFs has been uneven in 2026, with cumulative net flows under pressure year-to-date even as periodic inflow streaks provided support during the July recovery.
Fed Decision Today, Microsoft & Meta Earnings Next in Focus for Bitcoin
All eyes are on the Federal Reserve’s policy announcement later Wednesday. Beyond the rate decision itself, the accompanying statement and any signals on the outlook will be closely scrutinized. A hold with patient language could support risk assets, while hawkish commentary risks further pressure.
Investors will also watch a busy slate of major U.S. technology earnings, including from Microsoft and Meta Platforms, for clues on AI capital-expenditure trends and broader market sentiment. Continued monitoring of Bitcoin ETF flows and any further moves in Asian chip stocks will provide additional near-term cues.