Despite a significant 17% drop in SK Hynix's shares after a record profit increase, Bitcoin has risen by 1% as the Fed's rate decision looms.
By Shaurya Malwa Jul 29, 2026, 5:32 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on South Korea's flag (Daniel Bernard/Unsplash)SummaryShow- Bitcoin and other major cryptocurrencies experienced a slight increase, even as Asian stock markets, particularly in the semiconductor sector, faced significant declines.
- The steep drops in shares of SK Hynix and Samsung reflect a reevaluation of the previously high expectations for AI-driven demand following a surge in tech stock prices.
- Bitcoin's ability to remain stable during recent downturns in the tech sector indicates a potential weakening of its correlation with AI-related stocks, despite lingering regulatory uncertainty and the impending Federal Reserve decisions.
Bitcoin rose by 1% to approximately $63,800 on Wednesday, defying a tumultuous period for Asian stock markets, marking the second time within a week that cryptocurrency has demonstrated resilience amid a retreat in the AI sector.
Other major cryptocurrencies followed suit, with Ether increasing by 1% to $1,899, XRP climbing 2% to $1.07, BNB rising to $567, Solana stabilizing at $73, and Dogecoin making slight gains. Hyperliquid’s HYPE was the only major cryptocurrency to decline, falling 3% to $54.
The turmoil in the stock market was particularly evident among chip manufacturers. South Korea's benchmark index plunged 11%, following an 11% loss on Tuesday, setting the stage for an unprecedented two-day drop. SK Hynix shares tumbled nearly 17% despite a remarkable 557% increase in quarterly profits that failed to meet expectations, while Samsung's stock fell 12% ahead of its earnings report scheduled for Thursday. The MSCI Asia Pacific index decreased by 2%, reaching its lowest point since mid-April, and Nasdaq 100 futures dropped by 1%, extending a five-day losing streak for this tech-heavy index, the longest in 2026.
Despite SK Hynix reporting a more than sixfold increase in quarterly profits, its stock plummeted due to overly optimistic expectations regarding AI demand. This skepticism has also led to a $797 billion loss among the largest U.S. tech companies last week, now affecting the memory chip makers supplying the necessary hardware.
Throughout July, cryptocurrency prices have mirrored movements in tech stocks, rising when chip stocks surged and declining alongside them. However, this correlation appears to have faltered twice in the last five sessions.
Bitcoin managed to stay relatively stable during last week's sell-off of major AI stocks and has shown an upward trend this week. Observing this pattern over two occasions is noteworthy, although it does not confirm a definitive break in correlation. Bitcoin miners still rely on demand from AI data centers, but the earlier strong connection observed in July seems to be weakening.
Bitcoin briefly dipped below $63,000 after the Senate postponed the Clarity Act on Monday, a bill that had gained momentum the previous week following reports of President Trump's agreement on ethics provisions, but it quickly recovered.
The Federal Reserve is expected to announce its rate decision later today, with markets anticipating a roughly 15% chance of an increase. Core PCE inflation data and second-quarter GDP figures will also be released, along with another wave of earnings from major technology companies.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By CoinDesk ResearchJul 22, 2026Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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