Bitcoin (BTC) 'Withstands' Asia Semiconductor Shock...Recovers to $64,000

▲ Semiconductor, bear market, Bitcoin (BTC)/AI generated image

While Korean semiconductor stocks melted down, Bitcoin (BTC) actually rebounded by 1%. The synchronization between AI semiconductor stocks and Bitcoin, which had continued throughout July, appears to be breaking in the sharp decline.

According to FX Leaders, a foreign exchange and financial media outlet, on July 29 (local time), the KOSPI experienced its worst two days in history, falling an additional 11% after the previous day's decline. SK Hynix plunged 17% as its quarterly profit, despite surging 557%, fell short of market expectations. Samsung Electronics also dropped 12% ahead of its earnings announcement.

The selling shock spread to Asian and US stock markets. The MSCI Asia Pacific Index fell 2%, and Nasdaq 100 futures continued their weakness for five consecutive trading days. As the AI investment fever rapidly cooled, a sell-off in semiconductor stocks spread across global markets.

Bitcoin rose by 1%, climbing to around $63,800 during the sharp decline in Asian stock markets. This is the second instance in the past five trading days where Bitcoin has held up while AI-related stocks collapsed. Previously, when approximately $797 billion evaporated from large US tech stocks in a single day, the cryptocurrency market's movement was limited.

The link between Bitcoin and AI semiconductor stocks has not been completely severed. Bitcoin mining companies that have entered the AI data center business are exposed to the same demand trends as semiconductors. However, the synchronization seen in July, where Bitcoin rose with semiconductor stocks and fell with them, did not operate in the recent two sharp market declines.

When the US Senate postponed the processing of a bill for the US cryptocurrency market structure, Bitcoin briefly fell below $63,000 but quickly recovered its losses. The market is awaiting the Federal Reserve's (Fed) interest rate decision, core Personal Consumption Expenditures (PCE) price index, and Q2 Gross Domestic Product (GDP) announcements. The likelihood of an interest rate hike reflected in the market is approximately 15%.

[Article Key Summary]

-While the KOSPI fell 11% for two consecutive days and SK Hynix plunged 17%, Bitcoin rebounded by 1%.

-This is the second instance in the past five trading days where Bitcoin held up despite a sharp decline in AI-related stocks.

-The impact of the US cryptocurrency market structure bill's postponement was short-lived, and the market's attention shifted to the Federal Reserve's decision.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*