Bitcoin remained around $66,300 on Wednesday, maintaining a two-week high, as the semiconductor rally that has propelled cryptocurrency throughout the month continued into a second session, coinciding with the Japanese yen’s decline to its lowest level in forty years. The largest cryptocurrency experienced an increase of nearly 1% for the day and 3% for the week, with approximately $31 billion in trading volume and a 24-hour price range of about $65,400 to $66,900. Ether traded near $1,935, reflecting a 3% increase over the week. XRP increased by 2% to $1.14, and TRON experienced a slight uptick. In contrast, the day’s underperformer was hyperliquid’s HYPE, which declined by 4% to $60 and has fallen 10% over the past seven sessions.
Bitcoin’s dominance alongside the subdued daily movements of major cryptocurrencies suggests a market that is gradually ascending due to macroeconomic factors rather than any intrinsic catalysts specific to the crypto space. The driving force remains the semiconductor trade. MSCI’s Asia Pacific equities gauge increased by 1%, building on Tuesday’s largest single-day gain in a month. Notably, South Korea’s Kospi surged by 5%, suggesting that a leveraged-position unwind, which had previously driven the benchmark nearly 30% below its peak, may be coming to a close. Samsung and SK Hynix took the lead after a significant increase of over 5% in a U.S. semiconductor gauge on Tuesday, which helped the index recover from technical bear-market territory.
The Chinese AI shock that impacted these same stocks less than a week ago – including bitcoin – has completely reversed. A recent development in the currency markets has seen the yen fall beyond 163 per dollar for the first time since 1986, continuing a downward trend that has proven resistant to Japanese intervention efforts. Finance Minister Satsuki Katayama stated that authorities are prepared to take “bold steps” as necessary, according to source. However, the interplay of a strengthening dollar, increasing U.S. Treasury yields, and rising oil prices due to the Iran conflict has overshadowed these initiatives. That backdrop is the one bitcoin holders have long contended works to their advantage.
A major currency losing a tenth of its value against the dollar, with its central bank unable to stop the slide despite tens of billions spent, exemplifies the debasement scenario that advocates for bitcoin often highlight. Whether that thesis is driving any real flows remains uncertain, and bitcoin has been correlating more closely with chip stocks than with the yen in recent months. However, the currency stress represents a form of macro pressure that has traditionally strengthened the case for holding a fixed-supply asset.