Bitcoin edged higher on Wednesday, holding above the $64,000 mark as investors stayed on the sidelines ahead of the U.S. Federal Reserve’s policy decision. The cryptocurrency also remained resilient despite renewed selling pressure in AI-related technology stocks.
The world’s largest cryptocurrency was up 0.65 percent at $64,267 as of 12:45 GMT.
In the previous session, Bitcoin fell below $63,000, mirroring a broader sell-off in global equities led by AI-linked technology stocks.
Investors eye Fed rate decision
Investors remained focused on the Federal Reserve’s policy decision due later on Wednesday, with uncertainty over the outcome keeping trading activity muted.
According to CME FedWatch data, markets were pricing in a 68 percent probability that the Fed would keep interest rates unchanged, while assigning a 32 percent chance of a 25-basis-point hike.
A more hawkish-than-expected stance could pressure Bitcoin and other cryptocurrencies, while a dovish tone may provide fresh support for digital assets and other risk-sensitive assets.
Although Bitcoin has increasingly moved in tandem with broader risk assets over the past year, it has proven more resilient than semiconductor and AI-related stocks this week as investors reassessed elevated valuations in the sector.
Bitcoin remains strong amid AI-related sell-off
The cryptocurrency held steady despite renewed weakness in Asian equities, with South Korea’s KOSPI tumbling more than 12 percent amid an intensified sell-off in AI-linked chipmakers.
Shares of SK Hynix fell as much as 20 percent after the memory-chip manufacturer reported record quarterly earnings that still fell short of investors’ lofty expectations.
Institutional appetite for Bitcoin has remained uneven, with U.S. spot Bitcoin exchange-traded funds posting modest net inflows overall in July despite several recent sessions of outflows.
Beyond the Fed decision, investors are also watching a busy earnings calendar for major U.S. technology companies, including Microsoft and Meta Platforms, for further signals on artificial intelligence spending trends and overall market sentiment.
Major cryptocurrencies traded higher on Wednesday, tracking Bitcoin.
Ethereum, the second-largest cryptocurrency by market capitalization, gained 0.74 percent to $1,906.67, while XRP, the third-largest, advanced 2.3 percent to $1.0787.
Solana rose 0.30 percent to $73.610, while Cardano gained 3.86 percent to $0.1642.
Among meme-based cryptocurrencies, Dogecoin edged up 0.78 percent.
