Bitcoin rose above $66,000 on Tuesday, hitting its highest level in nearly a month as a rebound in Asian semiconductor shares helped lift broader risk assets after last week’s selloff.
According to CoinGecko, Bitcoin gained 3.5% on the day, with its seven-day increase reaching 5.8%. Daily trading volume across the market stood at $33 billion. Ether outperformed, changing hands at $1,939, up 4.5% over 24 hours and 8.5% over the past seven days.
Among other tokens, XRP rose 4.6% to $1.13, SOL added 3.8% to $78.37, and both BNB and DOGE were up more than 2%. HYPE, the token issued by decentralized perpetuals exchange Hyperliquid, rebounded 4.6% to $62.99.
Chip-stock rebound feeds through to crypto
The latest upswing started in the same corner that had been under the heaviest pressure last week. The MSCI Asia Pacific Index climbed 2%, snapping a four-session losing streak, with Taiwan Semiconductor Manufacturing Co. and Samsung leading the move higher.
Across the region, Taiwan’s Taiex and South Korea’s benchmark index each jumped about 4%. China’s tech stock index surged nearly 7% after so-called national team funds stepped in to support the market. Japan’s Nikkei, which had briefly fallen into correction territory on Friday, rebounded 3%.
Market participants cited in the report said the semiconductor selloff triggered last week by developments in China’s AI technology appears to have eased for now. Funds moved back into large-cap tech names, and that recovery also supported risk assets including Bitcoin.
Spot Bitcoin ETFs log a fifth straight day of inflows
Crypto had two additional supports behind the move. First, U.S. spot Bitcoin ETFs continued to attract money, posting net inflows for five straight trading days and taking in more than $600 million over that stretch. The report described it as the longest run of institutional buying since mid-July and a reversal from the eight-week outflow trend that had persisted since late June.
According to SoSoValue, U.S. spot Bitcoin ETFs brought in about $227 million on July 20 alone. That marked the first five-day streak of net inflows since late April. Spot Ether ETFs also posted positive flows, with roughly $38 million in net inflows on the day. BlackRock’s ETHA accounted for $34 million of that total.
Over the full five-day period, spot Bitcoin ETFs absorbed about $727 million, making it one of the steadiest buying waves since the historic outflows seen in June. Total assets in Bitcoin ETFs also recovered from roughly $75 billion at the start of July to about $79 billion.
The report said Bitcoin held the $63,000 support area as the chip-led selloff faded, while the return of ETF demand gave the market support that had been missing during a quarter marked by persistent outflows.
Oil pullback and Fed meeting now in focus
A second tailwind came from easing geopolitical tensions and a pullback in oil prices. International crude, which had risen for two straight days on conflict in the Middle East, turned lower, with Brent crude down 1% to $88.58 a barrel. Iran said mediators were passing along proposals aimed at easing the conflict, including a suggested 10-day ceasefire.
Jeff Mei, chief operating officer at crypto exchange BTSE, said traders are closely watching the Federal Reserve as they adjust positions.
"Given the macroeconomic uncertainty in the market right now, Bitcoin and Ether may be trading at relatively low levels, but valuations look reasonable," Mei said. "The market expects rates to stay unchanged this time, but everyone is looking for clues on the direction of monetary policy in the second half of the year."
The report also noted that trading volume remains subdued, leaving conviction harder to gauge. The Fed is scheduled to hold its rate-setting meeting on July 28-29, an event the report called key to determining how far this rebound can extend. Markets currently place the probability of a July rate hike at about 15%, while the September outlook remains uncertain.
Even with prices moving higher, spot-market volume is still weak. The report said that suggests the recent rally has relied more on an improvement in risk appetite than on strong underlying conviction. If oil prices and U.S. Treasury yields rise again, that could pressure the Fed to keep a hawkish stance and weigh on risk assets.
Tech earnings week is the next market test
Beyond the Fed meeting, traders are also heading into a week of major U.S. corporate earnings. Alphabet, Tesla, and Intel are due to report, and markets will be watching whether AI capital spending continues to grow. The report said that theme has also been an important factor behind recent moves in semiconductor stocks and Bitcoin.
Its conclusion was straightforward: the same force is still shaping the market this month, only the direction has changed. Last week, Bitcoin fell alongside a sharp drop in Asian chip shares. This week, it climbed back to a one-month high as technology stocks recovered.