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Key Takeaways
- Bitcoin climbed to about $65,500, up 1% on the day and 5% for the week, as rebounding Asian chip stocks reversed last week’s crypto selloff.
- U.S. spot Bitcoin ETFs recorded a fifth straight day of inflows, totaling more than $600 million and reversing an eight-week outflow streak.
- Traders are watching the Fed’s July 28-29 meeting as the next test for the rally, with a July rate hike seen as roughly 15% likely.
Bitcoin rose to about $65,500 on Tuesday, a two-week high, as a rebound in Asian semiconductor stocks reversed last week’s crypto selloff and lifted risk assets broadly. The largest cryptocurrency gained 1% on the day and 5% over the week, with roughly $33 billion in trading volume changing hands.
Ether And Altcoins Extend Gains Alongside Bitcoin
Ether outpaced Bitcoin again, rising 3% to $1,922 and climbing 8% over seven sessions. XRP added 3% to $1.13 and is up 6% on the week.
Solana rose 2% to $78, while BNB held near $574 and Dogecoin traded flat. Hyperliquid’s HYPE token gained 4% to $63, though it remains the only major token still down on the week.
Chip Stock Rebound Drives The Move
The rebound traces back to the same trigger that drove last week’s decline. MSCI’s Asia Pacific equities index climbed 2% on Tuesday, its first gain in four sessions, led by Samsung and Taiwan Semiconductor. South Korea‘s and Taiwan’s benchmark indexes each rose about 4%, and a tech-heavy mainland China gauge jumped nearly 7% as state-linked institutions bought in. Japan’s Nikkei rose 3% after closing in correction territory on Friday.
A chip-stock selloff tied to concerns over Chinese artificial intelligence competition had weighed on the sector last week. The pressure spilled into crypto markets, with Bitcoin and Ether moving in tandem with semiconductor equities. Buyers returned to the same chip names this week as crypto prices rose in tandem.
ETF Inflows And Falling Oil Prices Add Support
Two additional factors supported Tuesday’s move. U.S. spot Bitcoin exchange-traded funds have now recorded inflows for five consecutive sessions, totaling more than $600 million. That marks the most sustained stretch of institutional buying since mid-July and reverses an eight-week outflow run that had persisted through late June, when redemptions had weighed steadily on price.
Oil prices also eased, removing a separate source of pressure on risk assets. Brent crude fell 1% to about $88.58 after Iran said mediators were circulating proposals aimed at easing hostilities, including a reported suggestion for a 10-day halt in strikes. Brent had climbed for two straight days on war-related concerns before Tuesday’s pullback.
Fed Meeting Looms As Next Test For The Rally
Jeff Mei, chief operating officer at crypto exchange BTSE, said current price levels reflect the macro uncertainty still facing markets. Mei said:
“Current bitcoin and ether prices are low but fair, given the macro uncertainties pervading markets. Traders expect rates to hold steady but are looking for more signals as to what’s to come later in the year.”
Mei pointed to the Federal Reserve’s late-July meeting as the next test for the rally. The Fed’s rate-setting committee meets July 28 and 29. Market pricing puts the odds of a July rate increase at about 15%, while a September move remains a live possibility among traders positioning for the rest of the year.
Spot-market trading volume across crypto stayed subdued even as prices climbed.
Bitcoin fell last week as Asian chip stocks declined and rose this week as those same stocks rebounded.
