Semiconductor shares continued their advance for a second consecutive session as enthusiasm around artificial intelligence spending boosted investor sentiment, while the Japanese yen weakened past the 163-per-dollar mark for the first time since 1986.

Bitcoin held near $66,300 on Wednesday, maintaining levels close to a two-week high as the AI-driven chip rally that has influenced crypto markets throughout the month extended its momentum. At the same time, the yen dropped to its weakest point in four decades.

BTC climbed almost 1% on the day and gained about 3% over the past week, with roughly $31 billion in trading activity. The cryptocurrency moved within a 24-hour range of approximately $65,400 to $66,900.

Ether traded around $1,935, up roughly 3% for the week. XRP rose 2% to $1.14, and TRON posted a small increase. Hyperliquid’s HYPE was among the day’s biggest losers, falling 4% to $60 and extending its seven-day decline to 10%. Bitcoin’s elevated dominance and limited movement among leading altcoins suggest the market is being guided more by macroeconomic developments than by crypto-specific factors.

The broader market rally continues to be fueled by semiconductor strength. MSCI’s Asia-Pacific equity index gained 1%, extending Tuesday’s biggest one-day rise in a month. South Korea’s Kospi surged 5% as the forced unwinding of leveraged positions that had dragged the index nearly 30% from its highs appeared to be easing.

Chip giants Samsung and SK Hynix led regional gains after a U.S. semiconductor index jumped more than 5% on Tuesday, helping the sector recover from a technical bear-market decline.

The market shock from China’s AI developments that pressured semiconductor stocks and Bitcoin less than a week earlier has now largely been reversed.

Attention has also shifted to the currency market, where the yen fell beyond 163 per dollar for the first time since 1986. The decline continued despite Japan’s attempts to slow the currency’s fall through intervention. Finance Minister Satsuki Katayama said officials are ready to take “bold steps” if required, according to Bloomberg, but the stronger dollar, elevated U.S. Treasury yields, and rising oil prices linked to tensions involving Iran have continued to pressure the yen.

The currency weakness aligns with a long-standing argument among Bitcoin supporters that monetary instability can strengthen the appeal of fixed-supply assets.

A major currency losing significant value against the dollar while authorities struggle to stabilize it despite large-scale intervention represents the kind of environment often cited in the case for Bitcoin as a hedge against currency debasement.

However, it remains uncertain whether yen weakness is directly influencing Bitcoin demand. BTC has recently shown a stronger relationship with semiconductor stocks than with foreign exchange movements. Even so, continued currency volatility adds to the broader macro backdrop that has historically supported interest in scarce assets such as Bitcoin.