Bitcoin closed the week up 4.16%, pulling away from softer U.S. equities as Democratic senators pushed back on the CLARITY Act. Onchain data shows most of the supply back in profit, yet analysts warn a near-identical rebound already broke down in June.
Bitcoin ended the week up 4.16%. Total crypto capitalization rose 2.30% to $2.22 trillion over the same week, while the S&P 500 slipped 0.53%.
Traders watched Washington closely through the week. Liquidations stayed contained and funding rates held near neutral. Neutral funding suggested leverage had not reached the levels seen during sharper market swings.
The CLARITY Act pulls focus back to Washington
Senator Cynthia Lummis released updated CLARITY Act text on July 22 after the Senate Banking and Agriculture committees merged their work. The draft covers regulator duties, developer protections, stablecoin rules, ethics and anti-money-laundering controls.
Lummis called the coming weeks the "last real chance" to pass the bill for years. But the measure faces resistance from within the Senate. Senator Elizabeth Warren and other Democrats criticized its ethics language and enforcement structure.
The opposition is not confined to longtime skeptics. Senator Ruben Gallego, who had backed the bill in committee, now dismisses it and plans a counterproposal with Republicans. The bill still needs 60 Senate votes to advance.
Corporate buyers stayed active as the debate ran. Strategy increased its dollar reserve by $225 million to roughly $3.2 billion after selling common shares, while keeping 843,775 BTC. The reserve supports preferred-stock dividends and debt interest rather than new Bitcoin purchases.
Onchain data urges caution
Not everyone is convinced by the rebound. Bitcoin's supply in profit climbed to 57.5% as of July 22, up from 46.2% on June 30, its 2026 low. That leaves most coins above their purchase price. The June trough came as supply in loss crossed the 50% mark, a level that has historically preceded bear-market bottoms.
Still, CryptoQuant says the trend must prove its staying power before it confirms a recovery. The firm noted that from April 28 to June 1 a similar run pushed supply in profit to 67% before both key metrics rolled back over. Its recovery threshold — supply in profit above 64% — remains unmet.
Sources: crypto.news, Cointelegraph, Crypto Briefing
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