Bitcoin Shows New Resilience as Stocks Retreat and Volatility Stays Subdued
Bitcoin demonstrated unusual resilience this week, climbing 4.4% to approximately $65,000 as softer-than-expected June inflation data boosted sentiment across digital assets. The broader crypto market also gained, with total market capitalization rising 1.7% to $2.31 trillion, even as U.S. equities retreated. The S&P 500 fell 1.6%, and the Nasdaq Composite dropped 2.9%, pressured by geopolitical tensions and a selloff in chipmakers.
Ether followed a similar trajectory, rising from $1,774 to $1,890 after the inflation report and later advancing to about $1,900.
Sentiment was further lifted after the White House approved an ethics compromise tied to the CLARITY Act, removing a months-long obstacle and opening a potential path for the crypto market structure bill through the Senate.
Traditional markets showed caution, particularly in oil. Brent crude surged to $90.70 a barrel as conflict disrupted traffic through the Strait of Hormuz, before easing into the mid-$80s. Funding on Hyperliquid’s WTI oil perpetual contract briefly reached an annualized 184%, indicating that energy traders remain unconvinced the geopolitical situation will cool quickly.
Bitcoin volatility remained near one-year lows despite the macro shocks, with Deribit’s DVOL readings near the bottom of their annual range. Such compression often precedes sharp moves. Futures open interest rose 3.4% to $51.12 billion, with long positions accounting for 52.1% of the market, while Binance funding averaged about 9% annualized.
ETF demand also strengthened. U.S. spot bitcoin funds recorded seven consecutive trading days of inflows through July 22, their strongest streak since early May, pushing cumulative net flows to $51.8 billion. Ether funds attracted $196 million over the same period, lifting total net inflows to $11.2 billion.
While crypto’s independence from equities this week is encouraging, analysts caution that one strong week does not establish a lasting decoupling. The near-term path remains uncertain, with low volatility and rising leverage raising the risk of a sharp move if macro conditions shift.