Bitcoin hovers above $64k ahead of Fed decision, shrugs off AI-led tech weakness

 Bitcoin moved slightly higher on Wednesday, hovering above $64,000 levels as investors refrained from making large bets ahead of the U.S. Federal Reserve’s policy decision, while the cryptocurrency showed resilience despite renewed selling in AI-linked technology stocks.

The world’s largest cryptocurrency last traded 1.8% higher at $64,220.5 by 09:25 ET (13:25 GMT).

Bitcoin slid below $63,000 in the previous session, tracking an AI-led global stock rout.

Fed decision on tap; modest chances of a hike linger

The Federal Reserve’s policy decision later on Wednesday remained the key focus for investors, with uncertainty over the outcome keeping trading subdued.

According to CME FedWatch data, markets continued to price a roughly 68% probability that the central bank would leave interest rates unchanged, while assigning about a 32% chance of a 25-basis-point rate increase.

A hawkish-than-expected outcome could weigh on cryptocurrencies and other risk-sensitive assets, while a dovish signal could bolster demand for digital assets.

Bitcoin has increasingly traded in line with broader risk assets over the past year, yet its losses have been more contained than those seen in semiconductor and artificial intelligence shares this week, as investors reassessed lofty valuations across the sector.

Bitcoin held relatively firm even as Asian equity markets came under renewed pressure, with South Korea’s KOSPI sliding more than 12%% as a fresh selloff in AI-linked chipmakers intensified.

SK Hynix shares tumbled as much as 20% after the memory-chip maker posted record quarterly earnings that nevertheless failed to satisfy investors’ elevated expectations.

Institutional demand has remained mixed. U.S. spot Bitcoin exchange-traded funds have recorded modest net inflows overall in July despite several sessions of outflows in recent days.

Beyond the Fed, investors are also monitoring a busy week of earnings from major U.S. technology companies, including Microsoft and Meta Platforms, for further insight into artificial intelligence spending trends and broader market sentiment.