SK Hynix shares plunged 17% even after the company reported a 557% increase in profit, as the results failed to meet elevated market expectations. Bitcoin, meanwhile, gained 1% ahead of Wednesday’s Federal Reserve interest rate decision.
Bitcoin advanced roughly 1% to around $63,800 on Wednesday, showing resilience as Asian stock markets suffered one of their steepest selloffs of the year. It marked the second time in a week that crypto markets have remained relatively stable despite a major reversal in artificial intelligence-related equities.
Major cryptocurrencies also moved higher. Ether climbed 1% to approximately $1,899, XRP rose 2% to $1.07, BNB traded around $567, Solana held near $73, and Dogecoin posted a small gain. Hyperliquid’s HYPE was the only major token to decline, dropping 3% to $54.
The equity market weakness was concentrated in semiconductor stocks. South Korea’s benchmark index fell 11% after a similar decline on Tuesday, putting it on track for its largest two-day drop on record.
SK Hynix lost nearly a fifth of its value despite reporting a massive jump in quarterly earnings, while Samsung shares dropped 12% ahead of its upcoming financial results. The MSCI Asia Pacific index declined 2% to its lowest point since mid-April, while Nasdaq 100 futures slipped 1%, extending the tech-heavy index’s losing streak to five consecutive sessions.
SK Hynix’s earnings reflected the growing pressure created by extremely high AI expectations. Although the company’s quarterly profit surged more than sixfold, investors were looking for even stronger results as optimism around AI demand had already pushed valuations higher. Similar concerns previously triggered a $797 billion decline across major U.S. technology stocks and have now spread to the memory chip manufacturers powering AI infrastructure.
Crypto markets had largely tracked AI-related equities throughout July, rising during chip rallies and falling during technology selloffs. That relationship has now weakened twice in the past five trading sessions.
Bitcoin showed limited reaction during last week’s Magnificent Seven stock decline and has continued to outperform during the latest technology downturn. While two occurrences are not enough to confirm a lasting shift, the recent action suggests the strong correlation between Bitcoin and AI-driven stocks may be losing strength.
Bitcoin briefly dipped below $63,000 after the Senate delayed progress on the Clarity Act on Monday. The market structure legislation had gained momentum the previous week following reports that President Trump supported a revised ethics provision, but the delay created short-term pressure before prices recovered.
The Federal Reserve will announce its latest monetary policy decision later Wednesday, with markets currently assigning about a 15% probability of a rate increase. Investors will also be watching upcoming core PCE inflation data, second-quarter GDP figures, and another round of earnings from major technology companies.
