Early Tuesday, Bitcoin climbed above $66,000, reaching its highest level in a month and reinforcing the broader upward trend. The market is now watching the next key resistance level around $67,400, corresponding to the previous swing high. Some traders believe that if Bitcoin breaks above $68,000, it could gain another 5-6%.
The rise in Bitcoin and the broader crypto market may be attributed to the White House’s reported agreement on the wording of the CLARITY Act, a move that could help advance the long-pending legislation. Ethereum (ETHUSD) and XRP (XRPUSD) gained over 4% each, and the total cryptocurrency market added approximately $63 billion in value over the past 24 hours. Following reports that US President Donald Trump had agreed to the ethics provision, which had previously stalled the legislation, the probability of the act passing this year on Polymarket rose sharply to nearly 50%.
At the same time, spot Bitcoin ETFs returned to inflows after weeks of outflows. On Monday, the funds attracted $227 million, marking the fifth consecutive day of inflows – the longest streak since a six-day run in early May – with cumulative inflows exceeding $700 million. The $227 million recorded on Monday was the largest daily inflow since July 6, leaving year-to-date net outflows for US spot Bitcoin ETFs at under $5 billion.
Options market data points to increased positioning for the end of July, when the US Federal Reserve is scheduled to hold its next meeting, as investors watch for fresh insights into monetary policy from new Fed Chair Kevin Warsh. Market participants widely expect the Fed to leave interest rates unchanged until at least September, with CME Group’s FedWatch Tool currently assigning an 83% probability to no change at the July meeting.
A factor that could influence risk appetite and Bitcoin’s near-term direction is the ongoing US-Iran conflict. Although mediators are actively working toward a new ceasefire, the two sides have continued exchanging strikes for a tenth consecutive night. The latest US strikes were launched in retaliation for the deaths of three US soldiers and as part of an effort to degrade Iran’s ability to attack ships in the Strait of Hormuz. Early Tuesday, a vessel transiting the waterway was struck by Iranian forces, prompting the crew to abandon ship. A day earlier, two other vessels were also targeted, with Iran’s Islamic Revolutionary Guard Corps (IRGC) claiming responsibility. Iranian strikes also reportedly hit US military assets in Bahrain, Kuwait, and Jordan.
For now, Bitcoin’s trajectory will depend on whether regulatory momentum, ETF demand, and broader market sentiment can sustain the latest rally.
This article was written in cooperation with Tradingview