Bitcoin Stays Steady as Chip Stocks Crash Amid Rising Bond Yields

Crypto markets and semiconductor stocks have split in recent days, with Bitcoin holding steady near $64,250 while chip stocks crashed 7%.

The contrast between the two markets was stark on Wednesday, with digital assets mostly drifting higher but chip stocks plummeting. The Philadelphia Semiconductor Index experienced its worst session since late July, falling 5%, and the Kospi index in South Korea dropped over 6% due to sharp declines in Samsung Electronics and SK Hynix.

The selloff in chip stocks was driven by rising bond yields, with U.S. 30-year Treasury yields reaching their highest level since 2007 and 10-year yields nearing early-2025 highs. Higher borrowing costs are making it more expensive for companies to invest in artificial intelligence infrastructure, which has propped up chipmakers like Samsung and SK Hynix.

Economists polled by Reuters expect the Federal Reserve to keep rates steady at 3.50%-3.75% in September, but the central bank's minutes from its July meeting will be closely watched for clues on future rate decisions.