SK Hynix shares dropped 17% despite reporting a 557% surge in quarterly profit, as investors viewed the results as insufficient compared with already elevated expectations. Bitcoin, meanwhile, gained 1% as markets awaited the Federal Reserve’s latest interest rate decision.
Bitcoin climbed about 1% to roughly $63,800 on Wednesday, holding firm while Asian stock markets experienced one of their most severe declines of the year. This marked the second time in seven days that crypto markets have remained resilient during a major selloff in AI-related technology stocks.
The broader crypto market also posted gains. Ether increased 1% to around $1,899, XRP advanced 2% to $1.07, BNB moved higher to approximately $567, Solana remained near $73, and Dogecoin edged up slightly. Hyperliquid’s HYPE was the only major token to trade lower, falling 3% to $54.
The equity selloff was concentrated in semiconductor stocks. South Korea’s benchmark index plunged 11% after an identical decline on Tuesday, putting the market on pace for its worst two-day performance ever.
SK Hynix shares fell sharply despite earnings showing quarterly profit had increased more than sixfold, while Samsung declined 12% ahead of its upcoming results. The MSCI Asia Pacific index dropped 2% to its weakest level since mid-April, and Nasdaq 100 futures slipped 1%, extending the technology index’s losing streak to five sessions.
SK Hynix’s performance highlighted the gap between strong AI-related growth and investor expectations that had become increasingly difficult to exceed. Although the company delivered a massive earnings increase, markets had priced in even stronger AI demand. Similar concerns contributed to a $797 billion decline in the largest U.S. technology companies last week and have now spread to the memory chip firms supplying AI infrastructure.
Throughout July, Bitcoin and the broader crypto market had generally moved in tandem with AI and semiconductor stocks, rising during technology rallies and declining during equity selloffs. That relationship, however, has weakened twice within the past five sessions.
Bitcoin showed limited reaction during last week’s Magnificent Seven tech stock decline and has continued to hold gains during the latest market downturn. While the recent moves are not enough to confirm a permanent shift, they suggest the previous downside correlation between Bitcoin and AI-related equities may be fading.
Bitcoin briefly slipped below $63,000 after the Senate delayed progress on the Clarity Act on Monday. The market structure bill had gained attention the previous week after reports that President Trump backed a revised ethics provision, but the delay created temporary selling pressure before Bitcoin recovered.
The Federal Reserve is set to announce its interest rate decision later Wednesday, with markets currently pricing in around a 15% chance of a rate increase. Traders are also watching upcoming core PCE inflation figures, second-quarter GDP data, and another wave of earnings reports from major technology companies.
