Asian semiconductor stocks bounced back strongly, ETF inflows extended their streak to five days exceeding $600 million, and oil prices softened as diplomatic signals emerged from the Middle East.
Bitcoin climbed to roughly $66,100 on Tuesday, its highest level in a month, as the semiconductor-driven selloff that pressured crypto last week reversed, with Asian chipmakers leading a broader recovery in risk assets.
The largest cryptocurrency rose 1% on the day and 5% over the past week, with trading volumes around $33 billion. Ether once again outperformed, advancing to $1,922, up 3% on the day and 8% over seven days. XRP gained 3% to $1.13, marking a 6% weekly rise, while Solana added 2% to $78. BNB held steady at $574, and Dogecoin was largely unchanged. Hyperliquid’s HYPE increased 4% to $63 but remained the only major token still down on a weekly basis.
The recovery was led by the same sector that drove last week’s losses. MSCI’s Asia Pacific equities index rose 2%, ending a three-session decline, with Samsung and Taiwan Semiconductor contributing the most to gains.
Stock benchmarks in South Korea and Taiwan each advanced about 4%, while a tech-heavy mainland China index surged nearly 7% as state-backed investors stepped in. Japan’s Nikkei rose 3% after entering correction territory on Friday. The AI-driven shock that hit chip stocks last week has, for now, been replaced by renewed buying interest in those same companies.
Additional support came from institutional flows, with U.S. spot Bitcoin ETFs recording five consecutive days of inflows totaling more than $600 million. This marks the strongest run of inflows since mid-July and follows an eight-week stretch of outflows that continued through late June.
Oil prices, which had risen for two days amid geopolitical tensions, pulled back. Brent crude fell 1% to around $88.58 after Iran indicated that mediators were circulating proposals to reduce 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, highlighting the 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.
Attention now turns to the Federal Reserve’s July 28–29 meeting. Markets assign roughly a 15% probability to a July rate hike, though a potential move in September remains on the table.
Despite rising prices, spot trading volumes across crypto markets stayed relatively muted, suggesting the rally is being driven more by improving risk sentiment than strong new conviction. Elevated oil prices and Treasury yields remain key factors that could keep the Fed cautious and limit further upside in risk assets.
In short, the same force that drove markets lower last week has reversed direction. Bitcoin declined alongside falling Asian chip stocks, and is now rising again as those equities rebound.
