Bitcoin Holds Firm Amidst AI Stock Rout Ahead of FOMC Decision
Bitcoin's resilience in the face of an AI-driven equity rout has sent shockwaves through markets. The price edged +1% higher to $64,250 on Wednesday morning, while Asian and semiconductor stocks plummeted.
The divergence between Bitcoin's performance and that of AI-linked equities is notable. While growth stocks tumbled, Bitcoin held firm above the $63,000 threshold, a recovery that is meaningful given the scale of the damage in AI hardware suppliers.
South Korea's KOSPI, the benchmark index for the Seoul Stock Exchange, slid more than 12% as chipmakers and AI hardware suppliers were pummeled. SK Hynix shares plummeted as much as 20%, triggered by record quarterly earnings that failed to meet investor expectations.
The Federal Reserve's July 29 policy meeting is a significant event risk for all asset classes, with traders bracing for potential rate hikes or dovish signals from Chair Warsh. According to CME FedWatch data, there's a 68% probability of keeping rates steady at 3.50-3.75%, with a 32% chance of a 25-basis-point hike.