Bitcoin rises toward $64,000 as Korea's record chip crash leaves crypto untouched

Bitcoin and major cryptocurrencies experienced modest gains on July 29, 2026, with Bitcoin rising about 1% to approximately $63,800 despite significant declines in Asian equity markets. This contrast was highlighted by a sharp sell-off in South Korean semiconductor stocks, with SK Hynix falling nearly 17% and Samsung declining 12%, leading South Korea’s benchmark index to suffer an unprecedented two-day drop of 22%. This equity downturn reflected a reassessment of the previously high expectations for AI-driven demand in the semiconductor sector after a period of rapid growth in tech stocks.

Despite SK Hynix reporting a remarkable 557% increase in quarterly profit, the results fell short of market expectations, triggering a sell-off as investors cooled on the AI demand narrative. This reassessment extended beyond South Korea, affecting broader tech equities, with the MSCI Asia Pacific index falling 2% to its lowest level since mid-April and Nasdaq 100 futures losing 1%, marking the longest losing streak this year for the tech-heavy gauge. In contrast, major cryptocurrencies like Ether, XRP, BNB, Solana, and Dogecoin posted gains, with only Hyperliquid’s HYPE token declining by 3%.

The divergence between crypto and AI-linked tech stocks is notable because Bitcoin had previously moved in close correlation with these equities throughout July, rising and falling in tandem with chipmakers. The recent resiliency of Bitcoin through two separate tech routs in just five sessions suggests a potential weakening of this correlation, though analysts caution that this is an emerging pattern rather than a confirmed trend. However, Bitcoin miners remain connected to AI data-center demand, implying some ongoing link between crypto and AI hardware markets.

Market uncertainty remains elevated ahead of the U.S. Federal Reserve’s upcoming rate decision, with a roughly 15% chance priced in for a rate hike, along with forthcoming core PCE inflation data, second-quarter GDP figures, and more tech earnings announcements. Additionally, Bitcoin’s price briefly dropped below $63,000 following a delay in the U.S. Senate’s Clarity Act—a significant market structure bill—before recovering. Finally, Binance maintained a strong market position, controlling about 55% of user funds and 24% of spot trading volume, drawing net inflows in early July even as the broader market experienced outflows, underscoring Binance’s continued dominance in the crypto exchange landscape.