Asian semiconductor stocks staged a strong comeback, ETF inflows stretched to a five-day run exceeding $600 million, and oil prices retreated as diplomatic efforts in the Middle East showed progress.

Bitcoin rose to about $66,100 on Tuesday, marking a one-month high, as the chip-sector slump that dragged crypto lower last week reversed, with Asian chipmakers leading a broader rebound in risk assets.

The top cryptocurrency gained 1% on the day and 5% over the week, with roughly $33 billion in trading volume. Ether continued to outperform, climbing to $1,922, up 3% daily and 8% over seven days. XRP added 3% to $1.13, bringing its weekly gain to 6%, while Solana rose 2% to $78. BNB held steady at $574, and Dogecoin was little changed. Hyperliquid’s HYPE increased 4% to $63 but remained the only major token still in negative territory for the week.

The rebound was driven by the same sector that sparked last week’s decline. MSCI’s Asia Pacific equities index rose 2%, ending a three-session losing streak, with Samsung and Taiwan Semiconductor leading the advance.

Benchmarks in South Korea and Taiwan each climbed around 4%, while a tech-heavy mainland China index jumped nearly 7% as state-backed investors stepped in. Japan’s Nikkei gained 3% after slipping into correction territory on Friday. The AI-driven selloff that hit chip stocks last week has, for now, given way to renewed buying in those same names.

Further support came from institutional demand, as U.S. spot Bitcoin ETFs recorded five consecutive days of inflows totaling more than $600 million. This marks the strongest sustained buying since mid-July and a turnaround from the eight-week stretch of outflows that ran 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 signaled 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, pointing to the upcoming Federal Reserve meeting as a key focus for traders.

“Markets expect rates to remain unchanged but are watching for clearer signals on policy direction later in the year,” Mei added.

Attention now shifts to the Federal Reserve’s July 28–29 meeting. Markets currently price in about a 15% chance of a rate hike in July, while a potential move in September remains possible.

Despite the price gains, spot trading volumes across crypto markets remained subdued, indicating the rally is being driven more by improving risk appetite than strong new buying conviction. Elevated oil prices and Treasury yields continue to pose risks, as they could keep the Fed cautious and cap further upside in risk assets.

In essence, the same dynamic that shaped markets throughout the month has reversed direction. Bitcoin fell last week alongside declining Asian chip stocks and is now climbing again as those equities recover.