Bitcoin surged to a two-week high of approximately $65,500 on Tuesday, marking a 1% increase on the day and a 5% rise over the past week. The trading session saw around $33 billion exchanging hands as optimism returned to the market.
In the altcoin arena, Ether outperformed its peers, climbing 3% to $1,922, and marking an 8% increase over the past week. XRP also gained 3% to reach $1.13, while Solana rose 2% to $78. BNB maintained its position at $574, and Dogecoin remained stable.
ETF Inflows Drive Institutional Momentum
The recent performance of U.S. spot Bitcoin ETFs has been remarkable, pulling in $227 million on July 20 alone. This marked the fifth consecutive day of net inflows, bringing total net assets to approximately $79.16 billion. Spot Ethereum ETFs also saw a substantial inflow of $38.09 million during the same period.
This five-day inflow streak totals over $600 million, representing the most sustained buying from institutional investors since mid-July, effectively reversing an eight-week outflow that persisted through late June.
Furthermore, the overall cryptocurrency market capitalization saw a 1.56% increase within 24 hours, reaching $2.24 trillion. Bitcoin derivatives trading activity amplified significantly, with trading volume soaring 95% to $59.67 billion, while open interest climbed 2.36% to $49.07 billion. Options volume surged 138% to $3.25 billion, with options open interest rising 1.86% to $32.67 billion.
On the four-hour chart, Bitcoin traded between $65,140 and $65,623. The MACD indicated bullish momentum while the RSI sat at 62, suggesting it had yet to enter overbought territory. A breakthrough above the $66,000 mark could pave the way for a rally towards $67,000 and then $68,000. Conversely, a drop below the $65,000 support level could bring $64,000 back into view.
CLARITY Act Progress Lifts Sentiment
Investor sentiment received an additional boost from developments in Washington. President Trump has agreed to an ethics clause related to the CLARITY Act, a bill that would separate the regulatory oversight of digital assets between the SEC and CFTC. This agreement, reached Monday after months of stalled negotiations, is anticipated to pave the way for Congress to act before the early August recess.
The rebound in the semiconductor sector further fueled broader market optimism, with MSCI’s Asia Pacific gauge climbing 2%. Markets in South Korea and Taiwan each rose approximately 4%, while Japan’s Nikkei gained 3%. A technology-heavy index in mainland China jumped nearly 7% as state-linked buyers stepped in.
On the oil front, Brent crude prices fell 1% to $88.58 after Iran indicated that mediators were circulating proposals aimed at easing regional tensions.
Jeff Mei, COO at BTSE, remarked, “Current Bitcoin and Ether prices are low but fair, given the macro uncertainties pervading markets.” He highlighted that traders are closely watching the Federal Reserve’s upcoming meeting scheduled for July 28-29, with only a 15% probability priced in for a rate hike.
Analyst Michaël van de Poppe expressed his belief that Bitcoin could rally towards the $80,000–$85,000 range over the next two to three months, coinciding with the 50-week moving average, a level he views as typical resistance in the early stages of a post-bear-market recovery.
As of the latest update, Bitcoin’s price stands at $65,442, with buyers maintaining their position above the $65,000 support zone.
