Bitcoin price climbed above $65,000 as renewed regulatory optimism strengthened sentiment across the cryptocurrency market on Tuesday.
The total crypto market capitalization rose 1.56% within 24 hours, reaching $2.24 trillion overall. There was also an increase in on-chain activity and inflows into United States spot exchange-traded funds which was beneficial to Bitcoin. The recovery has put the $66,000 resistance level within reach in case the momentum is strong.
CLARITY Act Breakthrough Lifts Market Confidence
Investor confidence was boosted following the acceptance of an ethics clause by President Donald Trump associated with the CLARITY Act. The agreement could remove a key obstacle that delayed negotiations for several months.
A source in the industry indicated that the deal came up Monday evening after negotiations between the legislators and the administration officials. The clause concerns limiting the manner in which government officials can use digital resources when they are in office.
Trump Clears Path For CLARITY Act Vote With Ethics Deal
US President Donald Trump has agreed to an ethics provision that could unlock passage of major crypto legislation.
An industry source told The Block the agreement came Monday evening after months of stalled talks.
The… pic.twitter.com/loQB0Sykvu
— BSCN (@BSCNews) July 21, 2026
The bill would separate the regulation of digital assets between the Securities and Exchange Commission and Commodity Futures Trading Commission. Congress needs to do it before the end of early August where congress recess may postpone further development.
Upon passing, the bill would be reintroduced in the House and then go to Trump to be approved. Ethereum price has surged to over $1,900 as part of the wider rally. XRP also managed to stay above $1.20 following the increase of about 5% in the last week.
Bitcoin Open Interest Climbs as Derivatives Volume Surges 95%
The Bitcoin derivatives activity intensified as the volume of trading increased by 95% to reach 59.67 billion in the course of the session. The open interest rose by 2.36% to $49.07 billion indicating traders were increasing positions even as the market experienced more uncertainty.
Options trading saw the greatest action, with a gain of 138% and a total volume of $3.25 billion. Meanwhile, options open interest rose 1.86% to $32.67 billion, indicating steady demand for hedging strategies. Generally, the numbers indicate more involvement in the Bitcoin futures and options exchanges, with the most significant growth in transaction volumes.
Spot Bitcoin ETFs Attract $227M as Inflow Streak Reaches 5 Days
U.S. spot Bitcoin ETFs attracted $227 million in net inflows on July 20, extending their positive streak to five sessions.
The daily inflows also increased the total ETF net assets to about 79.16 billion as per the market data accompanying.
Spot Ethereum ETFs recorded $38.09 million in net inflows during the same trading session.
Spot Bitcoin ETFs Record $227M in Net Inflows on July 20
On July 20 (ET), U.S. spot Bitcoin ETFs recorded total net inflows of $227 million, marking the fifth consecutive day of net inflows. U.S. spot Ethereum ETFs saw total net inflows of $38.09 million. pic.twitter.com/bXok2eaMkN
— Wu Blockchain (@WuBlockchain) July 21, 2026
The numbers depicted that institutional demand was still alive in the major cryptocurrency investment products.
The sustained inflows may aid in wider market sentiment in future trading sessions.
Bitcoin Price Outlook: Will BTC Reach $66,000 After This Breakout?
The latest BTC price soared to $65,442, extending its recovery as buyers maintained control above the $65,000 support zone.
The four-hour chart showed Bitcoin prices between $65,140 and $65,623, with consistent demand around the latest highs. The asset increased by 3% in the previous candle, which illustrates increased purchasing activity in the market.
The MACD was bullish with its main line above the signal line. Its positive histogram also reflected positive upward momentum. The RSI, in the meantime, stood at 62, still not in the overbought range.
An established breakout at the higher end of $66,000 would open the way to $67,000 and then $68,000. Nonetheless, to maintain the short-term bullish setup, the future Bitcoin outlook will be required to maintain a value of $65,000.
Any drop below that support may propel BTC to $64,000. The additional weakness can reveal the exposure of the $63,000, wherein buyers might seek to recover once more.