Bitcoin tops $67K, crypto stocks rally on Fed bets and regulatory optimism

Bitcoin rose 2.3% to $67,100, driving crypto-stock rallies as traders positioned for a Fed rate cut and US regulatory progress.

"Spot Bitcoin ETFs saw net inflows of about $320 million on Monday, the largest single-day inflow in three weeks, as institutional demand picks up ahead of the Fed meeting," James Butterfill, head of research at CoinShares, said.

CRCL, BMNR and MSTR each posted gains exceeding 5%, while Coinbase Global advanced more than 4%. The moves came as Treasury Secretary Scott Bessent said lawmakers are close to passing the Clarity Act, which would establish a federal framework for digital assets. Bitcoin has gained about 14% in July, recovering from a range-bound stretch between $60,000 and $67,000 that lasted most of the second quarter.

Bitcoin's next resistance sits at $68,500, a level not tested since early June, with support at $64,000. The Federal Reserve's two-day policy meeting starting July 29 will be the next major catalyst, with fed funds futures pricing an 88% probability of a 25-basis-point cut. On Polymarket, traders assign a 64% probability that the Fed will raise rates at least once before year-end, reflecting uncertainty over whether easing or tightening prevails later in 2026.

Ethereum traded above $1,900, up 1.8% on the day, while XRP rose past $1.14. The broader crypto market rally lifted total market capitalization above $2.5 trillion, with Bitcoin dominance holding near 54%. Spot ETF flows have turned positive after weeks of mixed activity, with trading volumes rebounding as investor focus shifts from AI-driven equity trades toward digital assets, according to CoinGecko data.

The convergence of dovish Fed expectations and a clearer US regulatory path has created a tailwind for crypto assets that had been subdued for months. If the Clarity Act advances and the Fed delivers a cut, Bitcoin could test the $70,000 level for the first time since May. A hawkish surprise from the Fed or a breakdown in regulatory talks would risk a sharp reversal, with the $64,000 support level serving as the first line of defense.

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