Bitcoin Defies AI Stock Crash Ahead of Pivotal Fed Decision
Bitcoin held steady near $65,000 on Monday despite a sharp decline in artificial intelligence stocks. The tech-heavy Nasdaq 100 index suffered losses as companies tied to AI narrative fell in value. However, Bitcoin's price remained unaffected, suggesting that short-term positioning may be decoupled from AI beta.
This decoupling raises questions about the link between Bitcoin and tech-heavy indices, which have often moved in lockstep this year. Traders are now focusing on the Federal Reserve's interest rate decision due Wednesday, which could act as a catalyst for Bitcoin's price movement. Analysts say that if the central bank delivers a hawkish surprise, it could pull Bitcoin lower alongside stocks.
Rate expectations have been a dominant force in crypto markets throughout 2026, with a pause in hikes fully priced in for Wednesday. However, the spotlight will fall on the updated dot plot and Chair Jerome Powell's commentary. A more dovish tone could trigger a rapid breakout above $70,000, while a hawkish surprise could drag Bitcoin lower.