Bitcoin rises to $63,800 as Korea chip crash leaves crypto untouched
In brief
- Bitcoin climbed 1% to $63,800 Wednesday amid Asian equity selloff
- SK Hynix crashed 17% despite 557% profit surge, citing AI demand shortfall
- Crypto held steady while tech stocks fell, breaking month-long correlation pattern
Chip Earnings Trigger Broad Selloff
SK Hynix fell about 17% after reporting a 557% surge in quarterly profit that still came in below expectations. The miss reflects a gap between anticipated AI-driven demand and what the company actually delivered. South Korea's benchmark index tumbled 11% on Wednesday, following an 11% drop on Tuesday, while Samsung slid 12% ahead of its own earnings results on Thursday.
The regional pain rippled outward. The MSCI Asia Pacific index dropped 2% to its lowest level since mid-April, and Nasdaq 100 futures fell 1%, extending a five-day losing streak for the tech-heavy gauge.
Crypto Breaks the Tech-Stock Link
For most of July, crypto moved in lockstep with semiconductor stocks. Crypto moved in step with technology stocks throughout July, rising when chips rallied and falling when they slipped. That dynamic shifted Wednesday.
"the correlation that defined July has stopped holding on the way down."
Ether rose 1% to $1,899 as equities crumbled, suggesting digital assets are no longer amplifying broader tech-sector weakness. The decoupling may reflect profit-taking discipline in crypto, or a recognition that AI demand concerns don't directly threaten blockchain infrastructure.
Fed Decision Looms
The Federal Reserve delivers its rate decision later Wednesday, with markets pricing roughly a 15% chance of an increase. Bitcoin briefly slipped below $63,000 as the Senate delayed the Clarity Act on Monday, but regulatory uncertainty hasn't derailed the asset's modest upside momentum heading into the Fed announcement.
Frequently asked questions
Why did SK Hynix stock crash if profits surged 557%?
SK Hynix's massive profit surge was driven by expectations for AI-driven demand that ran further than the company's actual results. The miss between forecast and reality triggered the selloff, signaling investor concerns about AI demand sustainability.
Is Bitcoin following tech stocks down?
No. Bitcoin and Ether held steady while Asian equities and Nasdaq futures fell sharply Wednesday. The correlation between crypto and technology stocks that defined July has stopped holding on the downside, suggesting digital assets are decoupling from the broader tech rout.
