Bitcoin Rallies Even as Chip Stocks Stumble

Bitcoin posted modest gains towards the end of last week, advancing about 1% to trade near $63,800, even as Asian stock markets endured one of their sharpest selloffs of the year. The move marked the second time within a week that the cryptocurrency remained relatively stable despite heavy pressure on technology shares linked to the AI sector.

Other leading digital assets also recorded positive performance. XRP climbed 2% to $1.07, while Ether increased roughly 1% to around $1,899. BNB strengthened to $567, Solana held steady around $73, and Dogecoin also edged higher. Hyperliquid’s HYPE token stood out as the only major crypto in negative territory, slipping 3% to around $54.

The steepest losses across equity markets were concentrated in semiconductor companies. South Korea’s main stock index plunged 11%, following another 11% decline a day earlier, putting it on track for its biggest two-day drop on record. Chipmaker SK Hynix tumbled about 17% despite reporting quarterly profit that increased more than fivefold. Samsung Electronics also fell 12% ahead of its earnings announcement scheduled for July 30.

The broader regional picture was equally weak. The MSCI Asia Pacific Index declined 2%, reaching its lowest level since April. In the United States, Nasdaq 100 futures dropped another 1%, extending losses for a fifth straight session and marking the technology-focused benchmark’s longest losing streak of the year.

Throughout much of the past month, crypto generally mirrored movements in technology stocks. Digital assets tended to rise alongside semiconductor shares and weaken when the stocks came under pressure.

However, Bitcoin remained largely unchanged during last week’s sharp decline in the Magnificent Seven technology stocks and has managed to post gains during the latest wave of equity weakness.

While the two instances are not enough to confirm a lasting shift, market participants are beginning to question whether the close connection between crypto and AI-driven technology shares is starting to fade. Even so, Bitcoin mining companies continue to rely heavily on demand linked to data center expansion.

Earlier last week, Bitcoin briefly dipped to under $63,000 after the U.S. Senate postponed consideration of the Clarity Act, legislation designed to establish a clearer regulatory framework for digital assets.

Upcoming releases on core PCE inflation and second-quarter gross domestic product, along with earnings from several major technology companies, are expected to provide additional direction for the markets after the Fed voted to maintain the current benchmark lending rate.

Companies like Circle Internet Group Inc. (NYSE: CRCL) with a major stake in digital currencies will be tracking upcoming news releases to see how crypto markets react to the macroeconomic data released.

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