Bitcoin Hits Five-Week High Above $66,400
Bitcoin (BTC) surged to a five-week high above $66,400 on Tuesday, extending its 24-hour gain to nearly 3%. The rally is driven by renewed optimism around the Clarity Act and strong inflows into spot Bitcoin ETFs.
Clarity Act Progress Boosts Sentiment
Progress on the Clarity Act is a major catalyst. Reports that President Trump agreed to a key ethics provision have boosted the odds of the bill's passage to nearly 50% on Polymarket. This has lifted crypto-related stocks like Coinbase (COIN) and Circle (CRCL), each up about 9%.
Bitcoin ETFs See Sustained Inflows
U.S. spot Bitcoin ETFs pulled in $227 million on July 20, marking a fifth consecutive day of net inflows—the longest streak since late April. Over the past week, ETFs have attracted roughly $727 million, the most sustained buying since the record outflows of June. Total Bitcoin ETF assets have climbed back to about $79 billion.
Market Overview
Bitcoin's advance comes as U.S. stocks are set for sizable opening gains, led by the Nasdaq's 1.2% advance. Despite ongoing geopolitical tensions with Iran and rising oil prices, markets are looking past the conflict. However, hedge funds are dumping tech stocks at the fastest pace in a decade, which could impact the risk-on backdrop for crypto.
Key Developments
- Twenty One Capital (XXI) sheds 9% as CEO Jack Mallers departs; merger with Strike collapses.
- Telegram plans to launch a self-custody crypto wallet for its nearly 1 billion users.
- Movement Labs files for Chapter 11 bankruptcy after pivoting to cross-border payments.
- Grayscale hires Sebastian Pulido to lead onchain asset management.
- Schwab says crypto markets may be starting to reward fundamentals over hype.
Fed Rate Hike Odds Rise
Odds of a July rate hike have risen to 22% from 12% a week ago, and odds of a hike by September have jumped to about 70%. Despite this, Bitcoin continues its rise, now more than 15% above the June low.
What to Watch
This week brings Big Tech earnings from Alphabet, Tesla, and Intel, which will show whether AI spending—a trade Bitcoin has moved with—is still climbing. The Fed meets July 28-29, and the return of the ETF bid is a positive sign for sustained momentum.
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