Bitcoin bounced back to $64,075 as AI sector stocks plunged, dragging major indexes like South Korea’s KOSPI and tech giant SK Hynix down sharply.
Markets have been rattled by a sudden AI stock rout, with shares in companies heavily invested in artificial intelligence technology falling significantly. This sell-off has hit tech-heavy indexes hard, but Bitcoin showed resilience, shrugging off the tech turmoil. Investors are now eyeing the upcoming Federal Open Market Committee (FOMC) meeting as the next major event that could dictate market direction.
FOMC Meeting and ETF Flows Shape Bitcoin’s Path
Current futures markets assign roughly a 70% probability that the Fed will hold interest rates steady at the FOMC meeting. This expectation is helping support risk assets including Bitcoin. In parallel, inflows into Bitcoin exchange-traded funds have ticked higher, signaling renewed investor appetite amid broader market unease. The combination of a cooling Fed and continuing ETF demand could provide a buffer against further downside risks for BTC.
Bitcoin’s ability to recover amid a tech sector sell-off contrasts with declines seen in stocks like SK Hynix, which dropped over 5% due to AI-related concerns. This divergence might make Bitcoin an attractive alternative for traders looking to hedge tech volatility ahead of the Fed’s decision.
This material is for informational purposes and does not constitute financial advice.
