Key Highlights
- Bitcoin climbed near $66,000, pushing the total crypto market value up 1.74% to $2.24 trillion.
- Strong spot Bitcoin and Ethereum ETF inflows, rising open interest, and short liquidations helped drive prices higher.
- Reports of progress on the CLARITY Act improved investor sentiment, although the bill still faces further review before advancing.
The cryptocurrency market is all green today as Bitcoin (BTC) climbed above the $66,000 mark, lifting the broader digital asset market.
The total crypto market value has jumped by 1.74% to about $2.24 trillion as investors reacted to strong demand from spot Bitcoin and Ethereum ETFs as well as optimism that the long-awaited CLARITY Act could finally move forward in the United States.
At the time of writing, Bitcoin was trading at $66,777, up 3.75% over the last 24 hours after spending much of the day near the $66,000 mark. The world’s largest cryptocurrency also saw its daily trading volume jump by 24.8% to around $30 billion, while the market cap increased by 3.8% to $1.33 trillion.
Ethereum (ETF) followed the rally, climbing above $1,900 to trade near $1,941, while XRP gained 4.66% to around $1.14. Solana also moved higher, trading at $78 as buying spread across the wider crypto market.
What is dragging prices up?
One major reason is the rally in Bitcoin trading through the futures market. According to data from Coinglass, open interest, which measures the total number of active futures contracts, has climbed by 9.22% to about $52.05 billion.
At the same time, the option trading volume has also increased by 117% to around $4.44 billion. This showed that more traders were entering the market instead of closing their positions. Funding rates also stayed positive, which is a sign that many traders were betting on Bitcoin prices moving even higher.
The rally gained further after many traders who had bet that Bitcoin would fall were forced to close their positions as prices continued rising. This pushed the market even higher.
Data from Coinglass shows that around $133 million was liquidated from the market over the last 24 hours, with $106 million from that total coming from only traders who had shorted the market.
ETF inflows keep demand strong
Institutional demand also remained strong as US spot Bitcoin exchange-traded funds recorded $227 million in net inflows on July 20, according to data from Farside Investor.
The result marked the fifth consecutive trading day of positive flows. Spot Ethereum ETFs also attracted $38.09 million during the same session, helping Ether extend its move above the $1,900 level.
These steady inflows suggest that large investors are still putting money into regulated crypto investment products despite recent market swings.
CLARITY Act boosts market optimism
The market also received support from Washington following reports that the White House had agreed on an ethics package related to the CLARITY Act.
The agreement was reportedly reached with Senators Cynthia Lummis and Bernie Moreno, with President Donald Trump approving the proposal before it was shared with selected Senate Republicans.
This bill is one of the most closely observed regulations in the United States as of now because it is expected to create clearer rules for the industry. The reported agreement could remove one of the biggest obstacles that has delayed the bill for months. A revised version of the legislation is expected within days as senators continue working toward an early August deadline.
However, the process is not over yet. The details of the ethics package have not been made public, and there has been no official statement from the White House confirming the agreement. Democratic lawmakers also said they have not seen the updated language. Several of them have already made it clear that their support depends on whether the ethics rules are strict enough once the bill is released.
Meanwhile, traders have increased their expectations for the bill’s progress. According to Polymarket data, the probability of the legislation passing this year rose from 31% to 43% in a single day.
While these developments have lifted market sentiment, investors are still watching other events that could affect prices. The Federal Reserve’s meeting on July 28 and 29 remains an important event for financial markets, while tensions involving Iran continue to create uncertainty for risk assets around the world.
Will Bitcoin break higher?
For now, Bitcoin’s price action toward $66,000 has given the market fresh momentum. It has also climbed above its 20, 50, 100, and 200 moving averages, which is another signal that short-term momentum is improving.
With current price action, Bitcoin seems to have started a major rally with potential to reach its next resistance level, which sits at $67K. Moreover, the Relative Strength Index is currently at $69, which means that Bitcoin is approaching an overbought level, but there’s still enough ground to continue its upward momentum.
Investors will now be waiting to see whether Bitcoin can break above the next resistance level and whether progress on the CLARITY Act continues in the days ahead.
Also Read: $3.3 Trillion Capital Group Deepens Bitcoin Exposure with Major Stake in Metaplanet
