Bitcoin moved higher on Wednesday, trading close to the $64,000 level as investors waited for the Federal Reserve’s latest interest rate decision.
The world’s largest cryptocurrency remained relatively resilient despite renewed weakness in artificial intelligence and semiconductor stocks. Bitcoin was last up around 1% at $64,075.50 after briefly falling below $63,000 during the previous session.
Bitcoin Investors Await the Fed Decision
The Federal Reserve’s policy announcement remained the main focus for cryptocurrency and financial markets.
According to CME FedWatch data, traders assigned a roughly 68% probability that the central bank would keep interest rates unchanged. Meanwhile, markets saw about a 32% chance of a 25-basis-point increase.
A more hawkish Fed decision could put pressure on Bitcoin and other risk-sensitive assets. Higher interest rates generally make speculative investments less attractive by increasing returns available from safer assets.
In contrast, a dovish message or signs that interest rates will remain stable could support demand for cryptocurrencies.
Bitcoin Resists AI-Led Technology Selloff
Bitcoin has increasingly moved alongside stocks and other risk assets over the past year.
However, its recent losses have been smaller than those recorded by artificial intelligence and semiconductor stocks. Investors have begun questioning the high valuations of several AI-related companies following their rapid gains.
Asian equity markets faced another wave of selling on Wednesday, led by sharp declines in South Korean technology shares.
The KOSPI index came under heavy pressure as investors reduced their exposure to AI-linked chipmakers.
SK Hynix Drops Despite Record Earnings
SK Hynix shares fell sharply even though the memory-chip producer reported record quarterly earnings.
The results failed to meet the market’s elevated expectations, highlighting how difficult it has become for major AI companies to satisfy investors after months of strong share-price growth.
The selloff contributed to weaker market sentiment across Asia. Nevertheless, Bitcoin continued trading close to $64,000.
Spot Bitcoin ETF Demand Remains Mixed
Institutional demand for Bitcoin has produced mixed signals.
U.S. spot Bitcoin exchange-traded funds recorded modest net inflows overall during July. However, several individual sessions have also experienced withdrawals.
ETF flows remain an important indicator of institutional interest because they show whether large investors are increasing or reducing their exposure to Bitcoin.
Consistent inflows could support the Bitcoin price, while prolonged outflows may create additional selling pressure.
Microsoft and Meta Earnings in Focus
Investors are also monitoring quarterly earnings from major U.S. technology companies, including Microsoft and Meta Platforms.
Their results could provide further information about corporate spending on artificial intelligence infrastructure.
Strong AI investment could improve broader market sentiment. However, disappointing forecasts or weaker returns from AI spending could extend the current technology-sector selloff.
Because Bitcoin often trades alongside risk assets, movements in major technology stocks may also influence the cryptocurrency market.
Ethereum, XRP and Other Altcoins Rise
Most major altcoins traded higher on Wednesday, although price movements remained relatively limited.
Ethereum, the world’s second-largest cryptocurrency, gained approximately 1.5% to trade near $1,912.92.
XRP climbed around 2.6% to $1.0858, while Solana advanced by 0.6%.
Cardano was among the strongest performers, rising approximately 4.5%. Dogecoin also edged 0.3% higher.
Fed Guidance Could Drive Bitcoin’s Next Move
Bitcoin’s ability to remain near $64,000 despite the AI-led stock selloff suggests that the cryptocurrency is showing some short-term resilience.
However, the Federal Reserve’s policy decision and comments on future interest rates could determine the market’s next major direction.
A hawkish message may strengthen the U.S. dollar and pressure cryptocurrency prices. A more supportive policy outlook could help Bitcoin extend its recovery and encourage further gains across the altcoin market.
