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Bitcoin held firm near $63,000 on Tuesday as AI linked chip stocks sold off despite strong earnings, highlighting a rare divergence between crypto and one of the market’s most crowded equity trades.
Micron shares fell about 7.5% on Tuesday even after the company recently reported fiscal third quarter revenue of $41.46 billion, up 346% from a year earlier.
Samsung also dropped after forecasting a 19 fold jump in operating profit, with Reuters reporting that shares fell as much as 10% following the results.
The moves suggest investors are becoming more sensitive to positioning and expectations across the AI trade. Strong results from chipmakers are no longer enough to support stocks that have already priced in aggressive growth from AI infrastructure demand.
Samsung’s earnings showed continued strength in memory chips, with AI demand driving higher DRAM and NAND prices, according to Reuters. But the stock reaction pointed to concerns that the market may have already priced in much of the upside from the AI boom.
Micron faced a similar setup. Its latest quarter showed record revenue and strong demand across memory products, but the stock still came under pressure as investors questioned whether the memory cycle is approaching a peak.
MarketWatch reported that Sandisk, Western Digital and Seagate also fell sharply, extending the selloff across storage and memory names.
Bitcoin moved in the opposite direction. The asset traded near $63,300, up 1.6% over the past 24 hours and 9.1% over the past week. Ethereum gained 1% over the same 24 hour period, while Solana traded above $82 and XRP held near $1.13.
The move was not broad enough to suggest a full speculative rally. DeFi tokens were flat over the seven day period, based on CoinGecko data, while Bitcoin and major Layer 1 assets led the move. That pattern suggests the market is favoring larger crypto assets rather than chasing risk across the entire sector.
Crypto sentiment also improved from depressed levels. The Fear and Greed Index stood at 27, in “Fear” territory, after sitting at 15 last week in “Extreme Fear,” according to the provided Alternative.me data.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
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