Bitcoin approaches $64K as AI optimism, chip stocks and weaker dollar lift sentiment
Bitcoin recovered strongly on Friday, posting its best session of the week as investors looked past geopolitical uncertainty, bond market pressure, and energy market volatility.
The leading cryptocurrency climbed 3.5% to nearly $64,000, rebounding after losses triggered by President Trump’s warning that U.S. strikes on Iran could escalate. BTC briefly dropped to around $61,850 before buyers stepped in, with roughly $28 billion in trading volume recorded over the previous 24 hours. CoinDesk data showed bitcoin finished the week 4.2% higher.
The broader crypto market also moved higher. Ether gained 2.6% to $1,760, ending the week with a 4% increase. Solana rose 2.6% to $78 but remained down 2.1% for the week, making it the only major cryptocurrency that failed to return to positive territory. XRP advanced 2.2%, TRON climbed 1.2% and posted a 4.7% weekly gain, while Hyperliquid’s HYPE increased 1.8% to $68. Dogecoin added 2.6% but still ended the week slightly lower.
The speed of bitcoin’s recovery was largely linked to derivatives positioning. Traders quickly closed positions after the Iran-related headlines and then re-entered the market, creating a sharp rebound that was driven more by leverage adjustments than by a sudden increase in spot demand.
Shawn Young, chief analyst at MEXC Research, said markets can move faster than underlying demand when liquidations begin influencing price action. He is watching whether bitcoin can maintain momentum within the $60,000 to $63,000 range following the recovery.
The rally also coincided with improving sentiment in Asian equity markets, particularly among semiconductor companies benefiting from continued enthusiasm around artificial intelligence. MSCI’s Asia Pacific index gained 1.4% as investors returned to chip stocks, reducing the index’s weekly losses.
South Korea’s Kospi index surged 4%, supported by strong demand for AI-related companies. SK Hynix gained attention after pricing a $26.5 billion American depositary share offering, one of the year’s largest stock transactions.
Currency movements provided another boost. The Japanese yen strengthened 0.6%, while long-term Japanese government bond yields declined after Finance Minister Satsuki Katayama called for pension funds to increase investments in domestic assets. At the same time, the U.S. dollar continued weakening and moved toward its second straight weekly decline.
Bitcoin’s weekly advance was not driven by traditional crypto catalysts. There were no major ETF inflows, significant network developments, or exchange disruptions. Instead, BTC managed to withstand several macro pressures, including oil market instability, a global bond selloff, shifting Federal Reserve expectations, and renewed military tensions involving the U.S. and Iran.
Investors are now closely monitoring the dollar’s continued decline. Bitcoin’s recent gains have come as the greenback loses value, and if the AI investment cycle remains strong while dollar weakness persists, crypto markets may continue to track broader technology and semiconductor trends more closely than blockchain-specific events.
