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Bitcoin and major cryptocurrencies inched higher on July 29 even as Asian equity markets, led by chipmakers, suffered one of their steepest two-day sell-offs of the year. Bitcoin climbed approximately 1% to trade near $63,800 on Wednesday morning in Asia, according to CoinDesk benchmark data, while South Korea's benchmark KOSPI tumbled 11% — its second consecutive double-digit decline and the worst two-day drop in the country's history. The cryptocurrency's resilience through the equity rout suggests its tight correlation with AI-linked technology stocks may be weakening after months of moving in lockstep with the sector.
SK Hynix and the Chip Crash That Shook Asia
The sell-off was concentrated in semiconductor stocks. SK Hynix, South Korea's largest memory chipmaker, fell approximately 17% after reporting a 557% surge in quarterly profit that still came in below analyst expectations. The company grew profit more than sixfold, yet its shares dropped nearly a fifth because expectations for AI-driven demand had run even further. Samsung slid 12% ahead of its own earnings release on Thursday. 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 — its longest of the year. The SK Hynix results crystallized the same doubt that wiped $797 billion off the largest U.S. technology stocks last Thursday: that AI-driven demand expectations had outrun even the most optimistic earnings projections.
Bitcoin's Correlation With Tech Stocks Shows Cracks
Crypto has spent the month moving in step with technology stocks, rising when chips rallied and falling when they slipped. That link has now failed twice in five trading sessions. Bitcoin barely moved through last week's Magnificent Seven selloff and is higher through this week's chip crash. Two instances is a pattern worth watching rather than a proven break, and bitcoin miners remain tied to AI data-center demand, but the correlation that defined July has stopped holding on the way down. Ether rose 1% to approximately $1,899, XRP added 2% to $1.07, BNB gained to $567, Solana held at $73, and Dogecoin edged up, according to CoinDesk price data. Hyperliquid's HYPE token was the only major in the red, down 3% to $54. The broad-based crypto market resilience through two separate equity routs suggests that macro factors — particularly the upcoming Federal Reserve decision — are now driving crypto more than tech-sector correlation.
The Federal Reserve Decision Looms Over Markets
The Federal Reserve is scheduled to deliver its rate decision later on Wednesday, with markets pricing roughly a 15% probability of an increase, according to CoinDesk. Core PCE inflation data and second-quarter GDP figures follow in the coming days, alongside another round of megacap technology earnings. Bitcoin briefly slipped below $63,000 on Monday after the U.S. Senate delayed the Clarity Act, the market structure bill whose passage odds had jumped last week on reports that President Trump agreed to ethics language, before recovering. The bill has been shelved until September, adding regulatory uncertainty to the macro mix. A hawkish surprise from the Fed would likely pressure risk assets including Bitcoin, as higher rates increase the opportunity cost of holding non-yielding assets. Conversely, dovish language could provide a tailwind. Ethereum spot ETFs recorded $105 million in weekly inflows for the week of July 13-17, their highest since April, per Capital.com data.
What to Watch Next
Market participants will be watching the Federal Reserve's rate decision and subsequent press conference for forward guidance on the rate path. Bitcoin's ability to hold above $63,000 through the equity sell-off and into the Fed announcement will be a key test of whether the decoupling from tech stocks is sustainable. Samsung's earnings on Thursday will provide the next data point for the AI-chip narrative. Core PCE inflation and Q2 GDP data later this week will further shape rate expectations. The Clarity Act's delay to September removes one near-term catalyst but adds long-term regulatory uncertainty that could weigh on sentiment across digital assets.
