Key Takeaways
- • Bitcoin traded near $64,075 on July 29, 2026, up approximately 1% over the prior 24 hours, after sliding below $63,000 in the previous session amid an AI-led global equity selloff in semiconductor and technology stocks.
- • The Federal Reserve's policy decision on July 29 remained the dominant driver of near-term crypto volatility, with CME FedWatch data showing markets pricing a 68% probability of unchanged rates and a 32% probability of a 25-basis-point rate increase.
- • Bitcoin demonstrated relative resilience compared to broader equities; while Asian markets—including South Korea's KOSPI—declined sharply (KOSPI fell over 12%), and memory-chip maker SK Hynix tumbled as much as 20%, Bitcoin losses remained more contained despite AI sector weakness.
- • A dovish Fed outcome could bolster digital asset demand, while a hawkish-than-expected decision could pressure cryptocurrencies and other risk-sensitive assets; Bitcoin has increasingly traded in line with broader risk assets over the past year.
- • July 2026 marked modest gains for Bitcoin despite volatility, with the cryptocurrency up approximately 6% month-to-date despite renewed selling pressure in AI-related technology equities and mixed institutional demand signals.
Summary
Bitcoin hovered near $64,075 on Wednesday, July 29, 2026, up roughly 1% over the previous 24 hours, as investors adopted a cautious posture ahead of the Federal Reserve's anticipated policy decision later that same day. The world's largest cryptocurrency had slipped below $63,000 in the prior session, tracking a significant global equity rout centered on artificial intelligence and semiconductor stocks. This volatile backdrop underscored ongoing correlation between digital assets and broader risk sentiment, a pattern that has intensified over the past twelve months.
The Federal Reserve's policy announcement emerged as the primary near-term catalyst for cryptocurrency and equities alike. According to CME FedWatch data, markets continued to price a 68% probability that the central bank would maintain interest rates unchanged, while assigning approximately 32% odds to a 25-basis-point rate increase. This uncertainty kept trading subdued across asset classes. A dovish outcome—favoring unchanged rates—could bolster demand for digital assets and other risk-sensitive investments, whereas a hawkish-than-expected decision risked renewed pressure on cryptocurrencies, equities, and leveraged positions.
Bitcoin's relative outperformance versus technology equities warranted particular note. While Asian equity markets collapsed under renewed AI sector pressure—South Korea's KOSPI falling more than 12%, with memory-chip maker SK Hynix plummeting as much as 20% despite posting record quarterly earnings—Bitcoin contained its losses more effectively. The cryptocurrency's greater resilience suggested that, despite tightening correlation with risk assets, digital assets retained some defensive characteristics during sector-specific equity dislocations. Month-to-date performance reflected this dynamic; Bitcoin had gained approximately 6% in July despite the week's volatility and weakness in AI-linked technology shares.
Institutional demand signals remained mixed as of late July, offering no clear directional bias for digital assets heading into the Fed decision. The confluence of Fed policy uncertainty, AI sector reassessment following lofty valuation expectations, and mixed institutional positioning left Bitcoin trading in a narrow band near $64,000, with investors broadly refraining from establishing large directional bets until post-announcement market clarity emerged.
The Federal Reserve's policy announcement emerged as the primary near-term catalyst for cryptocurrency and equities alike. According to CME FedWatch data, markets continued to price a 68% probability that the central bank would maintain interest rates unchanged, while assigning approximately 32% odds to a 25-basis-point rate increase. This uncertainty kept trading subdued across asset classes. A dovish outcome—favoring unchanged rates—could bolster demand for digital assets and other risk-sensitive investments, whereas a hawkish-than-expected decision risked renewed pressure on cryptocurrencies, equities, and leveraged positions.
Bitcoin's relative outperformance versus technology equities warranted particular note. While Asian equity markets collapsed under renewed AI sector pressure—South Korea's KOSPI falling more than 12%, with memory-chip maker SK Hynix plummeting as much as 20% despite posting record quarterly earnings—Bitcoin contained its losses more effectively. The cryptocurrency's greater resilience suggested that, despite tightening correlation with risk assets, digital assets retained some defensive characteristics during sector-specific equity dislocations. Month-to-date performance reflected this dynamic; Bitcoin had gained approximately 6% in July despite the week's volatility and weakness in AI-linked technology shares.
Institutional demand signals remained mixed as of late July, offering no clear directional bias for digital assets heading into the Fed decision. The confluence of Fed policy uncertainty, AI sector reassessment following lofty valuation expectations, and mixed institutional positioning left Bitcoin trading in a narrow band near $64,000, with investors broadly refraining from establishing large directional bets until post-announcement market clarity emerged.
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