Bitcoin Caught Between AI and Interest Rates
Bitcoin weakened again, hovering around US$63,670 on Wednesday (July 29). It fell approximately 0.5%, trading within a range of US$63,469 to US$64,640, indicating investor reluctance to take large positions ahead of the Federal Reserve's decision.
The Fed is set to announce its interest rate decision on Thursday at 01:00 WIB, followed by a press conference at 01:30 WIB. The market estimates a 66.3% probability that interest rates will remain unchanged, while the likelihood of a 25-basis-point hike stands at 33.7%.
Crypto sentiment is also being overshadowed by a sell-off in artificial intelligence and semiconductor stocks. South Korea's KOSPI index plunged 12.6% before closing 6% lower, following a report from SK Hynix that failed to meet high investor expectations, despite a sharp surge in profits.
Bitcoin appears more resilient than Asian tech stocks, yet the pressure has not fully dissipated. Investors remain concerned about the scale of AI spending, high valuations of chip stocks, and the impact of rising oil prices on inflation and US interest rate policy.
The altcoin market showed mixed performance. Ethereum traded around US$1,624.95, XRP at US$1.059, Solana at US$77.97, Cardano at US$0.1629, and Dogecoin at US$0.0701.
If the Fed signals a hawkish stance or raises interest rates, Bitcoin risks retesting the US$63,000 level and its daily low of US$63,469. Conversely, a decision to hold rates steady accompanied by a softer tone could pave the way for a recovery toward the US$64,600–US$65,000 range. Future direction will be determined by Kevin Warsh's comments regarding inflation and the likelihood of a rate hike at the next meeting. (arl)
Source: Newsmaker.id
