Asian Chip Stocks Rally Boosts Risk Sentiment, Bitcoin Surges to $65,500 for Two-Week High

Bitcoin surged to approximately $65,500 on Tuesday (21st), reaching its highest level in two weeks, primarily fueled by a reversal in the semiconductor stock selloff that had weighed on cryptocurrencies last week. Asian chip stocks led a broad rebound in global risk assets.

As the world's largest cryptocurrency, Bitcoin rose about 1%, gaining 5% for the week with trading volume around $33 billion.

Major cryptocurrencies showed mixed performance: Ethereum climbed 3% to $1,922, up 8% over seven days, outperforming Bitcoin; XRP rose 3% to $1.13; Solana gained 2% to $78; BNB remained steady at $574.

The rebound originated in the tech sector, which had suffered the most last week. The MSCI Asia Pacific Index rose 2% on Tuesday, ending a three-day losing streak, driven primarily by Samsung and TSMC.

Two additional factors supported Bitcoin’s rally: U.S. spot Bitcoin ETFs recorded inflows for five consecutive trading days, totaling over $600 million, reversing an eight-week outflow trend since late last month; and geopolitical tensions eased as reports emerged that Iran was considering a 10-day suspension of attacks, causing Brent crude futures to drop 1% to $88.58, alleviating inflation concerns.

Jeff Mei, COO of BTSE, noted that traders are positioning ahead of the upcoming Federal Reserve (Fed) meeting starting next Tuesday (28th). While the market prices in only a 15% chance of a rate hike in July, participants are still seeking policy signals.

Notably, despite the price recovery, spot trading volumes remain low, indicating that market sentiment is driven by renewed risk appetite rather than significant new capital inflows. Bitcoin’s price movements this week, like last month’s decline, closely followed semiconductor stock trends, with capital rotation remaining the dominant short-term theme.