Bitcoin Nears $65,000 as Selling Overhang Clears, ETF Inflows Continue

Bitcoin climbed to the doorstep of $65,000 as a mix of bullish catalysts lifted the token. The advance followed the easing of major selling pressure that had weighed on the market, alongside rising expectations for regulatory relief and continued inflows into spot cryptocurrency exchange-traded funds.

On July 10, Bitcoin rose above $64,600 in a sharp rally. It had traded below $58,000 as recently as July 1, but jumped more than 15% in just 10 days.

Market experts cited the removal of uncertainty surrounding sales by a major investor as the biggest driver of the rally. Strategy, led by Michael Saylor, recently sold about $200 million worth of Bitcoin, and the market is viewed as having fully absorbed the related supply and risk. What had been seen as a potential drag instead helped fuel a relief rally once the overhang cleared.

A series of developments tied to the industry's move into the financial mainstream also boosted sentiment. News that stablecoin issuer Circle received regulatory approval to establish a US national trust bank lifted the broader digital-asset sector. Reports that a new version of the Clarity Act could be introduced as early as next week further raised expectations for greater regulatory clarity.

Fund flows have also remained strong. Spot Bitcoin ETFs have recently attracted daily inflows ranging from $221 million to more than $300 million. Weekly net inflows totaled $1.347 billion.

July seasonality is also providing support, according to market watchers. Over the past 10 years, Bitcoin has generally posted relatively steady gains in July. Even during the severe bear markets of 2018 and 2022, the token recorded July rallies of 20% and 17%, respectively, despite the broader downtrend.

Even so, opinion remains divided on whether the latest advance marks the start of a longer-term trend reversal. The rebound could still prove to be a short-term relief rally, making the next few weeks critical for gauging whether shifts in the macroeconomic backdrop and investor confidence can be sustained.

From a technical standpoint, Bitcoin still needs to break through meaningful resistance levels. A Psalion official said the recent move toward $65,000 is encouraging, but does not yet confirm that the market has established a firm bottom. For the broader trend to turn decisively, Bitcoin needs to rise above $65,600, the high reached on June 22. A break above $67,300, the level touched in mid-June, would provide stronger confirmation of a sustained recovery.