Bitcoin held near $65,000 on Tuesday, shrugging off a sharp selloff in Nvidia and other AI-related stocks. The divergence comes as traders look ahead to the Federal Reserve's next rate decision, which could determine whether BTC breaks higher or revisits June's lows.
Bitcoin's resilience
While Nvidia dropped more than 5% and dragged the broader AI sector down, Bitcoin barely budged. The cryptocurrency traded in a tight range around $65,200, showing little reaction to the equity rout. It's a pattern that's played out before — crypto decoupling from tech, at least temporarily.
The selloff in AI names appears driven by profit-taking after a strong run, not by any crypto-specific catalyst. Bitcoin's relative calm suggests the market is waiting for something bigger.
The Fed factor
That something is the Federal Reserve. The central bank's policy meeting wraps up next week, and the rate decision will set the tone for risk assets across the board. Markets are pricing in a hold, but the language in the statement and Chair Powell's press conference will matter more.
A dovish tilt could give Bitcoin room to run above $66,000. A hawkish surprise, on the other hand, might send it back toward the $62,000 area — the low from late June.
What's at stake
Bitcoin has been stuck in a range between $62,000 and $66,000 for most of July. Each attempt to break higher has fizzled, and each dip has been bought. The Fed decision is the most obvious catalyst to break that pattern.
If the central bank signals rate cuts later this year, Bitcoin could finally push past resistance. If it pushes back against easing expectations, the June lows could come back into play. Either way, the next few days are likely to set the direction for August.
The Fed announces its decision on July 30. Until then, expect more sideways action — and a lot of eyes on the dot plot.
