Bitcoin Surges Past $65,000 After Five Straight Days of Spot ETF Inflows, Is $66,000 the Next Target?
Bitcoin Price Climbs Above $65,000 as Regulatory Optimism Boosts Crypto Market
Bitcoin (BTC) surged back above $65,000 on Tuesday as renewed optimism surrounding U.S. crypto regulations improved overall market sentiment.
The total cryptocurrency market capitalization increased 1.56% over the past 24 hours to $2.24 trillion. Rising on-chain activity and continued inflows into U.S. spot Bitcoin ETFs also supported BTC’s rally. If bullish momentum continues, Bitcoin could soon test the next key resistance level at $66,000.
CLARITY Act Breakthrough Strengthens Investor Confidence
Investor sentiment improved after U.S. President Donald Trump agreed to an ethics provision tied to the CLARITY Act, removing a major hurdle that had delayed negotiations for months.
According to industry sources, the agreement was reached Monday evening following discussions between lawmakers and administration officials. The ethics provision is designed to restrict how government officials can use digital assets while in office.
If approved, the CLARITY Act would divide oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Congress is expected to finalize the legislation before its early August recess to avoid further delays.
Once passed, the bill will return to the House before being sent to President Trump for final approval.
The positive regulatory outlook also lifted other major cryptocurrencies. Ethereum (ETH) climbed above $1,900, while XRP held above $1.20 after gaining around 5% over the past week.
Bitcoin Derivatives Activity Surges
Bitcoin derivatives trading saw a significant increase, with trading volume jumping 95% to $59.67 billion. Meanwhile, open interest rose 2.36% to $49.07 billion, indicating that traders continue to open new positions despite ongoing market uncertainty.
The options market recorded the strongest growth, with trading volume soaring 138% to $3.25 billion. Options open interest also increased 1.86% to $32.67 billion, reflecting sustained demand for hedging strategies.
Overall, the data suggests growing participation in Bitcoin futures and options markets, particularly through higher trading volumes.
Spot Bitcoin ETFs Record $227 Million in Inflows for Fifth Straight Day
U.S. spot Bitcoin ETFs recorded $227 million in net inflows on July 20, extending their positive streak to five consecutive trading sessions.
The continued inflows pushed total net assets held by spot Bitcoin ETFs to approximately $79.16 billion.
Meanwhile, spot Ethereum ETFs attracted $38.09 million in net inflows during the same trading session.
The data highlights continued institutional demand for major cryptocurrency investment products. If ETF inflows remain strong, positive sentiment across the crypto market could persist in the coming sessions.
Bitcoin Price Outlook: Can BTC Break Above $66,000?
Bitcoin is currently trading around $65,442, extending its recovery after buyers successfully defended the $65,000 support level.
On the four-hour chart, BTC has been trading between $65,140 and $65,623, with strong buying interest near recent highs. The latest candle gained roughly 3%, signaling increased buying pressure.
From a technical perspective, the MACD remains bullish, with the MACD line trading above the signal line and the histogram staying in positive territory. Meanwhile, the Relative Strength Index (RSI) stands at 62, suggesting that Bitcoin is not yet in overbought territory and still has room for further upside.
If Bitcoin breaks above and holds the $66,000 resistance level, it could extend its rally toward $67,000 and potentially $68,000.
However, if BTC falls below the $65,000 support level, it could decline toward $64,000. A deeper correction may expose the $63,000 support zone, where buyers are expected to step in once again.
