Crypto Rally Gains Steam: Bitcoin Crosses $66,000 on Chip Trade Tailwinds

Asian semiconductor stocks rebounded sharply, ETF inflows extended to a five-day streak topping $600 million, and oil prices eased as Middle East diplomacy showed signs of progress.

Bitcoin climbed to roughly $66,100 on Tuesday, reaching a one-month high, as the chip-driven selloff that weighed on crypto last week reversed, with Asian chipmakers leading a broader risk-on rally.

The leading cryptocurrency rose 1% on the day and 5% over the week, with about $33 billion in trading volume. Ether once again outpaced Bitcoin, rising to $1,922, up 3% on the day and 8% over seven days. XRP gained 3% to $1.13, lifting its weekly advance to 6%, while Solana added 2% to $78. BNB held steady at $574, and Dogecoin remained flat. Hyperliquid’s HYPE rose 4% to $63 but stayed the only major token still down on the week.

The recovery was driven by the same sector that triggered last week’s decline. MSCI’s Asia Pacific equities index climbed 2%, ending a three-session losing streak, with Samsung and Taiwan Semiconductor leading the gains.

Equity benchmarks in South Korea and Taiwan each rose around 4%, while a tech-heavy index in mainland China surged nearly 7% as state-backed investors stepped in. Japan’s Nikkei advanced 3% after slipping into correction territory on Friday. The AI-led shock that rattled chip stocks last week has, for now, given way to renewed buying in those same companies.

Additional support came from institutional demand, with U.S. spot Bitcoin ETFs posting five straight days of inflows totaling more than $600 million. This marks the strongest run of inflows since mid-July and a reversal of the eight-week outflow streak that lasted through late June.

Oil prices, which had climbed for two days on geopolitical tensions, pulled back. Brent crude fell 1% to around $88.58 after Iran indicated that mediators were circulating proposals to ease hostilities, including a reported plan for a 10-day pause in strikes.

“Current bitcoin and ether prices are low but fair, given the macro uncertainty across markets,” said Jeff Mei, chief operating officer at BTSE, pointing to the upcoming Federal Reserve meeting as a key focus for traders.

“Markets expect rates to remain steady but are looking for clearer signals on the policy outlook later this year,” Mei added.

Focus now turns to the Federal Reserve’s July 28–29 meeting. Markets assign roughly a 15% probability to a rate hike in July, though a move in September remains possible.

Despite rising prices, spot trading volumes across crypto markets remained subdued, suggesting the rally is being driven more by improving risk appetite than strong new conviction. Elevated oil prices and Treasury yields continue to pose risks, as they could keep the Fed cautious and cap further gains in risk assets.

In short, the same force that drove markets lower last week has reversed. Bitcoin declined alongside falling Asian chip stocks and is now rising again as those equities recover.