Bitcoin Holds Steady as Asian Chip Stocks Suffer Historic Sell-Off

Bitcoin edged up 1.1% to roughly $63,900 on Wednesday even as Asian equity markets, particularly chip related stocks, experienced one of their sharpest declines of the year, marking the second time in a week that crypto has stayed resilient during an AI stock downturn.

Crypto Majors Move Higher Together

Most major cryptocurrencies followed bitcoin’s gains, with Ether rising 1% to $1,900, XRP climbing 2% to $1.07, Solana holding around $73. HYPE token was the lone decliner among majors, falling 3% to $54.

Chipmakers Lead Sharp Equity Losses

South Korea’s benchmark index dropped 13%, adding to an 11% decline the previous day for its steepest two-day fall on record. SK Hynix shares fell nearly 17% despite reporting a 557% jump in quarterly profit, as results still fell short of elevated expectations tied to AI demand.

A Possible Shift in Correlation

Bitcoin has typically moved in line with tech and chip stocks throughout July, but that relationship has broken down twice in the past five trading sessions, with bitcoin remaining stable or rising even as chip stocks fell sharply. Bitcoin briefly dipped below $63,000 earlier this week after the Senate delayed a key market structure bill, before recovering.

The Federal Reserve is set to announce its rate decision Wednesday, with markets currently pricing in only a small chance of a rate hike, alongside upcoming inflation and GDP data.