Bitcoin Retakes $64,000, Crypto Miners Rally as AI Software Rout Eases

Bitcoin, the world’s largest digital asset, is closely linked to global macroeconomic conditions and the technology sector. Recent geopolitical conflicts have triggered sharp volatility in crypto markets. Strength in semiconductor and AI-related stocks, coupled with fluctuations in the yen, is now providing fresh impetus for crypto prices. The moves show how deeply cryptocurrencies have become intertwined with traditional finance and made them an important market signal for investors.

Bitcoin rebounded 3.5% to nearly $64,000 on July 16, according to CoinMarketCap, recouping losses caused by earlier geopolitical tensions and taking its weekly gain to 4.2%. Major cryptocurrencies including Ether and Solana also broadly advanced. Analysts said strength in Asian semiconductor and AI-related stocks, along with a firmer yen, were the main drivers of the rally.

Bitcoin and AI chips are both highly volatile risk assets, and shifts in capital allocation often link the two markets. Strategy, formerly MicroStrategy, has long bet its balance sheet on Bitcoin. The company and its co-founder Michael Saylor have become key gauges of institutional crypto exposure and financing risk.

Bitcoin fell as low as $61,400 on June 4, 2026, losing about 7% in 24 hours and 13% over the week. Saylor attributed the decline to capital rotating into AI. Broadcom shares plunged about 15% the same day after the company maintained, but did not raise, its forecast for more than $100 billion in fiscal 2027 AI chip revenue, dragging other chip stocks lower.

Bitcoin had earlier challenged $74,000, raising expectations that the rebound in risk assets would continue. But escalating tensions involving Iran pushed oil prices higher, while investors scaled back expectations for Federal Reserve rate cuts ahead of U.S. employment data. More cautious derivatives positioning added pressure on the cryptocurrency rally.

The latest bout of selling briefly sent Bitcoin down 3.5%. It later recovered to about $71,100, nearly 2% below its previous high, after dipping below $71,000. ETH and DOGE also weakened. In contrast, the iShares Expanded Tech-Software Sector ETF (IGV) rose about 2%.

Bitcoin has historically shared the Nasdaq technology sector’s appetite for risk, but it has recently weakened even as technology stocks hit record highs. Stalled cryptocurrency legislation in the U.S. Congress has dimmed expectations for policy support. Meanwhile, miners are redirecting power and data-center resources to AI computing, prompting the market to reassess the outlook for the mining industry.

As of July 20, 2026, Bitcoin had fallen below $75,000, sharply decoupling from the rally in U.S. technology stocks. Recent reports said pro-crypto legislation remained stuck in Congress. Miners are also reallocating capital and computing capacity amid the AI boom, cooling investors’ risk appetite and sustaining selling pressure across the crypto market.

Bitcoin has recently decoupled from U.S. equities, fueling concerns that each rebound is peaking at a lower level. As Bitcoin fell below $67,000, major tokens including Ether and Solana also came under selling pressure. By contrast, Nvidia’s earnings strengthened the outlook for artificial-intelligence investment, prompting funds to rotate into AI-linked tokens such as Internet Computer and Bittensor.

In the latest trading, Bitcoin lost the $67,000 level while Ether and Solana also declined. Decred surged against the broader trend after changes to its treasury-spending rules. Following Nvidia’s better-than-expected quarterly results and strong outlook, Internet Computer, Bittensor and shares of Bitcoin miners with AI data-center exposure advanced, highlighting the rotation in capital.

The market had been weighed down by a February selloff and extreme pessimism after U.S. spot Bitcoin ETFs recorded $3.8 billion in net outflows over five consecutive weeks. Crowded leveraged short positions also left the market vulnerable to a short squeeze when prices rebounded. Whether ETF inflows resume has become a key indicator of risk appetite among U.S. institutional investors.

On February 25, Bitcoin rose more than 5% over 24 hours to $67,500 in early U.S. trading. ETH reclaimed $2,000, while major tokens including SOL and DOGE gained more than 10%. CoinGlass recorded more than $307 million in short liquidations. U.S. spot Bitcoin ETFs posted net inflows of $506.5 million that day, including $297.4 million for BlackRock’s IBIT.

Bitcoin is highly sensitive to interest-rate and inflation expectations. February’s consumer price index from the U.S. Bureau of Labor Statistics matched market forecasts and did not support a near-term Federal Reserve rate cut. Still, falling oil prices helped ease inflationary pressure and supported risk assets including cryptocurrencies.

Bitcoin quickly reversed its overnight losses after the February CPI release, first breaking above $70,100 and then climbing past $71,000. Markets also digested news of a 400 million-barrel oil release. Ether, Solana and Cardano (ADA) rose in tandem, showing little drag from weakness in U.S. stocks.

Institutional capital has become a major driver of Bitcoin prices since the U.S. Securities and Exchange Commission approved spot Bitcoin ETFs in January 2024. An easing of U.S. policy uncertainty, along with gains in U.S. stocks and strong corporate earnings, lifted risk appetite and helped Bitcoin reclaim the $68,000 level.

Bitcoin surged from $62,400 to $68,600 over the past 24 hours, gaining about 9.9% and reaching a weekly high. U.S. spot Bitcoin ETFs ended five consecutive weeks of net outflows and recorded one of their largest inflow days of the quarter in the latest session, bolstering buying demand. Analysts cautioned, however, that the risk of market volatility had not fully receded.

Bitcoin and Ethereum had fallen for several consecutive days as investors grew concerned about AI stock valuations and the outlook for global risk assets. Cryptocurrencies often move with risk appetite in U.S. technology shares and Asian equities, making Bitcoin's ability to hold above $66,000 an important gauge of whether market confidence is recovering.

In the latest trading, Bitcoin surged above $66,000, while Ethereum returned to around $1,920, driving a rebound across crypto markets and Asian equities. Investors are now focused on NVIDIA's upcoming earnings and guidance for clues on whether momentum in technology stocks can continue and support the outlook for risk assets.

Bitcoin has long been viewed by some investors as inflation-resistant “digital gold,” but its recent performance has more closely resembled that of a volatile risk asset. Its price has moved closely in line with software-stock benchmarks such as the iShares Expanded Tech-Software Sector ETF (IGV), suggesting that selling pressure in U.S. technology shares and private equity markets is spilling into cryptocurrencies.

During U.S. trading on Monday, July 13, Bitcoin briefly rebounded above $65,000, but the rally failed to hold. It retreated to about $65,400 as the broader stock market and software shares declined. Polymarket showed the probability of Bitcoin falling below $55,000 had risen to 72%, reflecting weakening confidence among holders and increased downside risk.