Crypto Markets Rebound as Semiconductor Stocks Decline

Crypto markets rebounded in July as semiconductor stocks experienced a sharp decline. According to CoinEx Research, Bitcoin and Ether rose by 7.4% and 18.7%, respectively, while the Philadelphia Semiconductor Index fell 20.6%. The index ended approximately 22.7% below its June record.

The research firm noted that the July rally was a mean-reversion move from heavily reduced positioning rather than evidence of crypto fully decoupling from broader macroeconomic conditions. The U.S. Federal Reserve kept its target rate unchanged at 3.50%-3.75%, but three officials dissented in favor of a 25-basis-point rate increase.

CoinEx Research identified the gap between a stable policy rate and rising long-term yields as one of the most important macroeconomic risks entering August. The 30-year U.S. Treasury yield reached its highest level since 2007, while the 10-year yield ended July near 4.75%.