Bitcoin Tops $66,000 as Institutional, Whale and Options Demand Bolster Rally

Bitcoin climbed back above $66,000 as buying by institutional investors, long-term holders and derivatives traders helped fuel the rebound.

CoinDesk reported on July 21 that Bitcoin and the broader digital-asset market were advancing on expectations of progress on the Clarity Act. Reports that the White House had agreed to language covering the bill’s ethics provisions added to optimism that the long-stalled legislation could pass Congress.

CoinDesk said the latest gains were not being driven solely by short-term speculative demand. US-listed spot Bitcoin exchange-traded funds attracted more than $700 million over the past five trading sessions, the longest run of net inflows since May.

Tagus Capital said the rebound in institutional demand stands in contrast to the heavy selling pressure and record redemptions seen in early summer. It said $7.5 billion flowed out from mid-May through June.

On-chain data also point to renewed accumulation by long-term holders. Wallets that have held Bitcoin for at least six months are building positions again.

Alex Kuptsikevich, chief market analyst at FxPro, said large Bitcoin whales have increased their holdings over the past two months, while mid-sized wallets have been selling. The divergence could be a constructive medium-term signal for Bitcoin.

Glassnode said the market is becoming more balanced overall. Conviction among long-term holders is supporting prices, while speculative participation remains limited.

The derivatives market is also showing signs of broader participation. CoinDesk reported that some traders recently bought large call-option spreads betting Bitcoin would reach $72,000 by the end of July. That suggests options demand is building for further upside.

Short-term risks remain. CoinDesk said US Treasury debt issuance could drain market liquidity and weigh on risk assets.

Michael Kramer, founder of Mott Capital Management, said net new issuance tied to Treasury bill settlement is expected to total $56 billion, with another $37 billion to follow on Thursday. He added that Treasury issuance could remain elevated through Labor Day, weighing on risk assets over the summer.