4 Key Reasons Behind Bitcoin's (BTC) Rally Above $66K

July has historically been a positive month for Bitcoin, and this year has not disappointed. The cryptocurrency initially dipped below $58,000 for the first time in nearly two years, but quickly rebounded, reaching above $66,000—a gain of over $8,000 since the July 1 low.

Several factors drove this rally. First, spot Bitcoin ETFs resumed inflows after an eight-week withdrawal streak, with July 20 attracting nearly $227 million. Whale behavior also supported the price; CryptoQuant data shows that large holders (1,000–10,000 BTC) increased their 60-day net accumulation to about 66,700 BTC, the strongest reading since February.

Second, softer-than-expected US CPI inflation data for June reduced pressure on the Federal Reserve to hike interest rates, benefiting risk-on assets like Bitcoin.

Third, progress on the CLARITY Act—a key US regulatory bill—boosted sentiment. Reports indicated the White House agreed on an ethics package and sent language to Senate Republicans for validation. Industry experts view this as a major step increasing the likelihood of approval by 2026.

Source: https://cryptopotato.com/4-key-reasons-behind-bitcoins-btc-rally-above-66k/