Bitcoin Holds $66,300 as Chip Rally Extends, Yen Hits 40-Year Low

Semiconductor strength drives crypto gains into second session

Bitcoin traded near $66,300 on Wednesday, holding steady as the semiconductor rally that has powered crypto gains throughout July extended into a second consecutive session. The world’s largest cryptocurrency posted a 1% daily gain and a 3% weekly advance, with 24-hour trading volume reaching $31 billion and price action confined to a $65,400 to $66,900 range.

The semiconductor sector’s outperformance has been the primary driver of crypto gains this month, not crypto-specific catalysts. The MSCI Asia Pacific equities gauge rose 1%, while South Korea’s Kospi benchmark jumped 5%. The U.S. semiconductor gauge had fallen into technical bear-market territory before Tuesday’s 5% jump, reversing losses from a Chinese AI shock that hit semiconductor and bitcoin stocks less than a week prior.

South Korea’s Kospi had declined nearly 30% from its peak due to a leveraged-position unwind that appeared to be ending. The recovery marked a shift from earlier volatility that had weighed on regional equities and correlated crypto assets.

Japanese yen sinks to weakest level in four decades

The Japanese yen weakened to 163 per dollar on Wednesday, the first time since 1986 that the currency has traded at that level. The 40-year low represents a 10% loss in yen value against the dollar.

Japanese authorities have spent tens of billions attempting to halt the yen’s decline without success. Finance Minister Satsuki Katayama called for “bold steps” to address the currency weakness, which has been driven by a combination of a strengthening dollar, higher U.S. Treasury yields, and oil rising on the Iran conflict.

The yen’s structural decline has renewed focus on bitcoin’s debasement thesis. The argument holds that a major currency losing value against the dollar while its central bank cannot stop the slide supports the case for holding a fixed-supply asset. However, whether currency stress in the yen is actually driving real flows into bitcoin remains unclear. Bitcoin has tracked semiconductor stocks far more closely than the yen in recent months.

Altcoin performance mixed

Ether traded at $1,935, posting a 3% weekly gain. XRP rose 2% to $1.14. HYPE fell 4% to $60, extending losses to 10% over seven sessions.