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Bitcoin hits a two-week high near $65,500 as the chip trade turns back into a tailwind
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Bitcoin climbed to a two-week high near $65,500 on Tuesday, as a rebound in Asian semiconductor stocks fueled a broader risk rally. The largest cryptocurrency rose 1% on the day and 5% on the week, with roughly $33 billion changing hands, according to data. Ether advanced 3% to $1,922, while XRP and Solana also posted gains, reflecting renewed investor appetite for digital assets.
The rebound originated in the same sector that drove last week's decline. MSCI's Asia Pacific equities gauge climbed 2%, its first gain in four sessions, with Samsung and Taiwan Semiconductor leading the charge. South Korea and Taiwan benchmarks each rose about 4%, while Japan's Nikkei added 3% after slipping into correction territory on Friday. The Chinese AI shock that hit chip stocks has, for now, given way to buyers returning to those same names.
Supporting the move were five straight days of inflows into U.S. spot bitcoin ETFs, totaling more than $600 million—the most sustained institutional buying since mid-July. This marked a sharp reversal from the eight-week outflow run that persisted through late June. Meanwhile, oil prices pulled back, with Brent crude falling 1% to about $88.58, as diplomatic efforts in the Middle East suggested potential de-escalation.
Traders now view the Federal Reserve's July 28-29 meeting as the key test for the rally. According to Jeff Mei, chief operating officer at BTSE, "Current bitcoin and ether prices are low but fair, given the macro uncertainties pervading markets." He added that traders expect rates to hold steady but are seeking signals for later in the year.
However, the rally faces limits. Spot-market volume across crypto remained subdued even as prices rose, indicating the move was driven by returning risk appetite rather than fresh conviction. Higher oil and Treasury yields could keep the Fed hawkish and cap risk assets, maintaining a cautious backdrop.
Ultimately, Bitcoin's trajectory remains tied to the performance of Asian chip stocks. Just as last week's decline was triggered by a semiconductor selloff, this week's rebound reflects their bounce. The coming days will show whether the rally can sustain itself ahead of the Fed decision and amid lingering macro uncertainties.
