Bitcoin tops $66,000 as crypto stocks rally before Fed meeting

Bitcoin rose 1.6% to $66,308 on July 21, pushing the total crypto market cap 2.1% higher to $2.26 trillion as cooling inflation expectations and White House backing for the CLARITY Act revived risk appetite across digital assets.

"The market is pricing in a more favorable macro backdrop — lower oil, cooling CPI, and a Fed that has less reason to stay hawkish," Nina Volkov, crypto macro analyst at Edgen, said. "That combination is drawing institutional flows back into Bitcoin and the names that track it."

U.S. spot Bitcoin and Ethereum ETFs have reported consecutive net inflows, reversing weeks of outflows that had dragged Bitcoin below $63,000. Strategy Inc. (MSTR) rose 4% to $102.39 after Michael Saylor disclosed the company added $225 million to its cash reserves, bringing its Bitcoin holdings to 843,775 BTC alongside $3.2 billion in cash. Circle Internet Group (CRCL) gained 6.9% to $69.97, while BitMine Immersion Technologies (BMNR) added 2.4% to $17.02 after disclosing it acquired 7,430 ETH in the past week, bringing total holdings to 5.78 million tokens.

The Fed's two-day meeting starting July 28 is the next major catalyst. Markets expect rates to remain unchanged, but Chairman Kevin Warsh's forward guidance on inflation and growth will determine whether Bitcoin can hold above $66,000 — a level that has acted as both resistance and support over the past month.

Institutional flows return as regulatory clarity builds

The rally marks a reversal from June's Extreme Fear readings, when Bitcoin briefly touched $58,000 during geopolitical tensions between the U.S. and Iran. Crude oil prices have since cooled, easing fears of a second inflation wave that had weighed on risk assets.

On-chain data supports the bullish tilt. Open interest across Bitcoin futures has climbed to levels last seen before the June sell-off, while funding rates have turned positive after spending much of July in neutral territory. Spot ETF inflows resumed last week at a pace of roughly $150 million per day across the major issuers, according to CoinGlass data.

The CLARITY Act adds a regulatory tailwind. The White House has agreed on ethics rules for the crypto market structure bill, with the final text expected soon. Passage would mark the first comprehensive U.S. digital asset framework, providing clarity that institutional investors have cited as a prerequisite for larger allocations.

For the rally to sustain, Bitcoin needs to defend the $65,000 to $66,000 zone as support. The next resistance sits at $68,500, a level last tested in late June.

This article is for informational purposes only and does not constitute investment advice.