Bitcoin Nears $64,000 Ahead of Fed Decision, Bucking Tech Sector Weakness

Bitcoin's price edged higher on Wednesday, approaching the $64,000 mark as cryptocurrency markets awaited a key policy decision from the U.S. Federal Reserve. The digital asset demonstrated notable resilience, holding its ground despite a significant, AI-driven sell-off in global technology stocks.

As of 01:56 ET (05:56 GMT), the world's largest cryptocurrency traded at $64,075.5, up approximately 1% on the day, according to data from Investing.com. The move followed a dip below $63,000 in the previous session.

Fed Decision Looms Large

Investor caution is prevalent across markets ahead of the Federal Reserve's policy announcement later today. Uncertainty over the outcome has kept trading subdued, with market participants closely watching for signals on future monetary policy.

• According to the CME FedWatch Tool, markets are pricing in a roughly 68% probability that the central bank will keep rates unchanged.
• The tool indicates a 32% chance of a 25-basis-point rate increase.

A more hawkish-than-expected outcome could exert pressure on risk-sensitive assets, including cryptocurrencies. Conversely, a dovish signal from the Fed could bolster investor demand for digital assets.

Divergence from Tech Stocks

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Bitcoin's performance has contrasted with sharp declines in the technology sector, where investors are reassessing high valuations in semiconductor and artificial intelligence shares. This week, Bitcoin's losses have been more contained than those seen in the tech-heavy equity markets.

The sell-off was particularly intense in Asian markets, where South Korea's KOSPI index slid more than 12%. Chipmaker SK Hynix saw its shares plummet by as much as 20%, even after posting record quarterly earnings that failed to meet elevated investor expectations.

Broader Crypto Market

Institutional demand remains a key factor, with U.S. spot Bitcoin exchange-traded funds (ETFs) having recorded modest net inflows overall in July, despite several recent sessions of outflows. Most major altcoins also posted modest gains in Wednesday's trading.

• Ethereum (ETH) rose 1.5% to $1,912.92.
• XRP climbed 2.6% to $1.0858.
• Cardano (ADA) jumped 4.5%, while Solana (SOL) edged up 0.6%.