Bitcoin recovered roughly 3% from its session lows on Wednesday, climbing back near $61,000 after memory chip maker Micron Technology (MU) delivered a strong earnings beat that helped stabilize risk sentiment across financial markets. The bounce, while welcome to bulls, left the leading cryptocurrency still down about 2.9% over the past 24 hours, reflecting the persistent selling pressure that has plagued digital assets since early June.

Micron Earnings Ignite Late-Day Rally

Micron reported adjusted earnings per share of $25.11 versus consensus estimates of $20.71, with revenue of $41.5 billion topping forecasts for $35.8 billion. More importantly, the company guided fiscal fourth-quarter revenue to $50 billion against expectations of $43.4 billion, with adjusted EPS expected at $31 versus $24.30 and gross margins of 86% versus 83%. The stock surged nearly 8% in after-hours trading, lifting the broader tech sector and providing a tailwind for crypto assets.

The earnings report arrived after a volatile session during which bitcoin had slumped to as low as $59,000. By the close of after-hours trading, BTC had climbed back above $60,500, with some analysts attributing the rebound to improving risk appetite among institutional investors. “Micron’s numbers confirm that AI-driven demand for memory chips remains robust, which bolsters the narrative of sustained technology spending — a positive for all risk-on assets, including crypto,” noted one trader on social media.

Broader Market Context: Gold, Oil, and the Fed

The crypto recovery unfolded against a backdrop of broader market stress. Gold fell below $4,000 per ounce for the first time since November 2025, declining nearly 4% on the day. The precious metal has shed 28% from its January record high, undermining the so-called debasement trade that had previously boosted both gold and bitcoin. Silver also tumbled, dropping over 1% to just above $60 per ounce, now 50% below its January peak.

West Texas Intermediate crude oil slipped back to $70.20 per barrel, marking the first time since March that black gold has traded below the $70 threshold. The declines in commodities reflect growing concerns about global demand and the impact of higher interest rates. The Federal Reserve’s unexpectedly hawkish dot plot from last week continues to weigh on markets, with Chairman Kevin Warsh’s decision to scrap forward guidance adding further uncertainty.

U.S. Treasury Secretary Scott Bessent attempted to calm nerves during a CNBC appearance on Wednesday, expressing support for Warsh’s move and suggesting that the Fed’s rate hike projections may not materialize. “Bessent’s remarks gave a modest lift to both equities and crypto,” observed a market strategist. The 10-year U.S. Treasury yield slipped three basis points to 4.46% after the comments, while the two-year yield fell five basis points to 4.15%.

Altcoins and Crypto Equities Follow Bitcoin’s Lead

Ether (ETH) reclaimed the $1,600 level in late trading, though it remained down more than 3% on the day. Solana (SOL) pared losses to around 2%, changing hands near $67. XRP (XRP) also stabilized after a volatile session. Among crypto-linked equities, Coinbase (COIN), Circle (CRCL), and Galaxy (GLXY) gained 2% to 4% in after-hours trading, partially reversing steep intraday declines.

The rebound in crypto stocks came after a brutal session during which Strategy (MSTR) — the largest corporate holder of bitcoin — fell below $100 for the first time in over two years, touching as low as $99.10. The stock closed down 10.7% at $92.71, its weakest level since early 2024. The company’s high-yielding preferred stock STRC also hit a record low of $79.91 before recovering slightly to $80.80, down 7.5% on the day. The effective yield on STRC, now above 14%, signals extreme distress in the eyes of traditional finance analysts.

Criticism of Michael Saylor’s strategy mounted. Prominent gold advocate Peter Schiff wrote that Saylor had “clearly made material misrepresentations” in marketing STRC to risk-averse retirees, noting that the stock was down more than 17% from what many buyers paid just a month ago. “Almost two years of dividends gone,” Schiff added.

Wintermute Warns of Further Downside

Market-making firm Wintermute cautioned in a Wednesday note that bitcoin could grind toward $59,000 as summer liquidity dries up. The firm’s OTC desk pointed to deteriorating market conditions: token correlations are rising, meaning assets move together rather than on their own fundamentals, while liquidity is thinning with no fresh institutional bid visible in ETF flows. Wintermute flagged $59,000 as the key support level and the potential bear market low if current pressure continues.

The note identified three catalysts for the rest of the week: the U.S.-Iran peace deal and whether it holds, Thursday’s Personal Consumption Expenditures (PCE) inflation print — the Fed’s preferred gauge — and the quarterly options expiry at month-end. “Options markets price a relatively tight move for the next 24 hours, but the backdrop is clearly deteriorating,” the note added.

BlackRock Reiterates Bitcoin’s Role as Portfolio Diversifier

Amid the turmoil, BlackRock — the world’s largest asset manager — reinforced its view that bitcoin can serve as a complementary diversifier in multi-asset portfolios. In a post on X on Tuesday, BlackRock stated that “a modest allocation (typically ~1–2%) could impact return potential in a portfolio while maintaining appropriate risk tolerance.” The firm had first expressed this view in December 2024, and the latest reiteration comes as the asset continues to trade well below its all-time highs.

The endorsement from BlackRock highlights the growing institutional acceptance of bitcoin as an asset class, even as short-term price action remains challenging. However, the lack of fresh inflows into spot bitcoin ETFs — with BlackRock’s own IBIT shedding $300 million earlier this week — suggests that institutional buyers are waiting on the sidelines for clearer signals.

Housing Bill with CBDC Ban Heads to Trump’s Desk

In regulatory news, the U.S. House of Representatives passed the Senate’s Road to Housing bill 358-32 on Tuesday night, sending it to President Donald Trump for signature. The bill includes a two-page provision banning the Federal Reserve from issuing a central bank digital currency (CBDC) for four years. The Fed has repeatedly stated it would not proceed with a CBDC without explicit congressional direction. The passage of the bill — expected to be signed by Trump — represents a significant victory for crypto advocates who have long opposed government-controlled digital currencies.

However, Trump later canceled the planned signing ceremony, saying he would not sign the housing bill until Congress passes the SAVE America Act. The move adds uncertainty to the legislative timeline, though the CBDC ban appears likely to become law eventually.

Technical Analysis: Bear Flag Breakdown Confirmed

From a technical perspective, bitcoin’s price chart flashed a bearish signal that was confirmed by Wednesday’s early decline. The cryptocurrency fell over 2% on Tuesday, breaking down from a bear flag pattern — a sign that the counter-trend bounce from June 5 lows had ended and the broader downtrend could resume. Analysts had previously warned that the pattern could lead to a sell-off toward $55,000.

Currency markets reinforced the risk-off tone. The euro-yen pair fell to its lowest since May 6, declining 1.44% over the past week. The British pound and Australian dollar also lost ground to the Japanese yen, while the U.S. dollar index climbed to 101.57, its highest level since May 2025. “This is a classic risk-off signal,” one analyst noted. “Investors are rotating into traditional safe havens like the yen and dollar while selling higher-yielding currencies.” Given that bitcoin lacks an inherent yield, the intensification of risk-off trends could further pressure prices.

Another $30 Billion Headed to AI, Not Crypto

Adding to the competitive pressure on crypto for investor dollars, South Korean memory chip giant SK Hynix filed to raise nearly $30 billion by listing shares in the U.S., according to a Korean regulatory filing on Wednesday. The company’s market cap has surged above $1 trillion, making it only the second South Korean company to reach that milestone after Samsung Electronics. The massive capital raise — comparable in size to the 2019 Saudi Aramco IPO — underscores the overwhelming investor appetite for AI-related companies, drawing funds away from speculative assets like crypto.

The SK Hynix filing comes as Micron, another AI beneficiary, continues to attract investor attention with its earnings beat. Together, the two chipmakers exemplify the AI boom that has captured the bulk of risk capital in 2024 and 2025, leaving bitcoin and other digital assets to struggle for relevance in a rapidly evolving technological landscape.

As the trading day ended, bitcoin held above $60,500, but the path forward remains fraught with headwinds. The Micron-driven bounce provided a temporary reprieve, but underlying macro and technical signals suggest the bearish pressure is far from over. Investors will now turn their attention to Thursday’s PCE data and the quarterly options expiry, with the $59,000 support level looming as a critical demarcation between another correction and a deeper downturn.

Source: Coindesk News