Bitcoin has extended its impressive July recovery, climbing above $66,000 for the first time in more than a month after rebounding sharply from its early July low below $58,000. The leading cryptocurrency has gained more than $8,000 since then, with several key developments helping fuel the rally.
Renewed Demand for Spot Bitcoin ETFs
One of the biggest drivers behind Bitcoin’s recovery has been the return of strong inflows into US spot Bitcoin exchange traded funds. After enduring eight consecutive weeks of investor withdrawals, the funds finally reversed course earlier this month and have now recorded multiple weeks of positive inflows.
The momentum continued on July 20, when spot Bitcoin ETFs attracted nearly $227 million in fresh capital, highlighting renewed institutional interest and providing additional support for Bitcoin’s upward move.
Whales Continue to Accumulate
Large Bitcoin holders have also played a significant role in the rally. According to CryptoQuant, wallets holding between 1,000 and 10,000 BTC have substantially increased their buying activity.
The firm’s data shows that this group has accumulated approximately 66,700 BTC over the past 60 days, one of the strongest accumulation periods since February. Such sustained buying by major investors is often viewed as a sign of growing confidence in Bitcoin’s long term outlook.
Cooling US Inflation Boosts Risk Appetite
Macroeconomic conditions have also supported the recent price surge. June’s US Consumer Price Index report showed inflation easing more than expected, reducing concerns that the Federal Reserve would need to tighten monetary policy further.
Lower inflation typically improves sentiment toward higher risk assets, including cryptocurrencies, as investors anticipate a more favorable interest rate environment.
Progress on the CLARITY Act
Another factor contributing to Bitcoin’s strength is renewed optimism surrounding the proposed CLARITY Act in the United States.
Recent reports indicate that the White House has reached an agreement on an ethics package tied to the legislation and has forwarded the language to key Senate Republicans for further review.
Although the bill still faces legislative hurdles and full details have yet to emerge, many industry observers see the development as a meaningful step toward eventual approval. Just days after expectations for the bill’s passage had weakened significantly, the latest progress has revived optimism that the legislation could become law in 2026.
Together, improving institutional demand, sustained whale accumulation, favorable macroeconomic conditions, and growing regulatory optimism have combined to strengthen Bitcoin’s momentum and help drive its rally above the $66,000 mark.#crypto#cryptonews https://coinsignals.nethttps://t.me/coinsignalpublic
