Bitcoin near $64,000 amid Korea’s record chip crash

Bitcoin edged closer to the $64,000 mark amid significant movements in the global market. On Wednesday, Bitcoin saw an increase of 1%, reaching approximately $63,800. In other cryptocurrency movements, Ether rose 1% to $1,899, XRP advanced by 2% reaching $1.07, while BNB traded at $567. Meanwhile, Solana remained at $73, and Dogecoin experienced notable growth. These developments occurred alongside a record decline in Korea’s semiconductor sector, highlighting the volatile market conditions.

South Korea’s benchmark index dropped 11% on Wednesday after an 11% fall on Tuesday, leaving the market on course for a steep two-day decline concentrated in the chip sector and described as a record crash.

SK Hynix’s shares fell about 17% after the company reported a 557% surge in quarterly profit that nevertheless missed estimates, combining an outsized profit increase with an earnings result that fell short of expectations.

Samsung’s stock slid 12% ahead of its earnings announcement on Thursday, joining other major technology and chip-related names in substantial declines across the two trading days.

The sequence of losses over Tuesday and Wednesday constituted a pronounced downturn in South Korea’s semiconductor-linked equities during the reported period.

The MSCI Asia Pacific index fell 2%, and Nasdaq 100 futures were down about 1%, extending a five-day losing streak in futures markets. Bitcoin briefly slipped below $63,000 when the Senate delayed the Clarity Act, then recovered as the odds of its passage rose following reports of ethics language. Bitcoin had recently been moving with equities tied to AI and technology demand, and a pattern of correlation between cryptocurrencies and chipmakers was reported as breaking down. These market moves occurred amid broad weakness in indexes and futures tied to technology sectors.

Market attention focused on an upcoming Federal Reserve rate decision that carried roughly a 15% chance of an increase. Core PCE inflation data were expected to be released next, and second-quarter GDP figures were also scheduled to follow. The sequence of the Fed decision and the two macroeconomic releases framed market expectations during the period.

Markets remained cautious, with pronounced declines in South Korean chip stocks and related technology equities over two trading days that produced steep losses across semiconductor-linked names. At the same time, Bitcoin recorded a modest recovery toward the $64,000 mark after an earlier slip, reflecting mixed price action between cryptocurrencies and equity sectors. Investors awaited a Federal Reserve rate decision alongside upcoming Core PCE inflation and second-quarter GDP reports, which added to the uncertain regulatory and economic backdrop.