Crypto outperformed a sliding US stock market this week as cooler price data and CLARITY Act progress lifted sentiment. Low volatility and rising futures positioning, however, hint that the quiet stretch may not last.
Bitcoin pulled away from a retreating US stock market this week, rising while equities fell under geopolitical pressure and a chipmaker selloff. Softer June inflation and progress on the CLARITY Act lifted crypto sentiment, though subdued volatility and building leverage suggest the calm may not hold.
Crypto breaks from Wall Street
The total digital asset market value rose 1.7% to $2.31 trillion, even as the S&P 500 fell 1.6% and the Nasdaq Composite lost 2.9%. Bitcoin jumped 4.4% to about $65,000 after June inflation came in below expectations.
It later slipped toward $62,000 as US-Iran tensions intensified, before recovering to $65,011 by July 23. Ether climbed from $1,774 to $1,890 after the inflation report, then advanced to about $1,900.
Sentiment improved further after the White House approved an ethics compromise tied to the CLARITY Act. The agreement removed a months-long obstacle and opened a potential route for the crypto market structure bill through the Senate.
Oil markets signal lingering caution
Brent crude surged to $90.70 a barrel as the conflict disrupted traffic through the Strait of Hormuz, before easing into the mid-$80s. Prices remain below May’s $114 peak but well above the $71 level seen at the start of July. Funding on Hyperliquid’s WTI oil perpetual contract briefly reached an annualized 184% as traders rushed into long positions, while oil volatility ran about 3.2 times higher than equity volatility. Those signals suggest energy traders are not fully convinced the conflict will cool.
The 10-year Treasury yield pushed toward 4.60% and the dollar index climbed near 101. Markets assigned roughly a 75% chance the Federal Reserve holds rates at its July 29 meeting.
Bitcoin leverage builds without reaching extremes
Bitcoin volatility stayed close to one-year lows despite the macro shock, with Deribit’s DVOL readings near the bottom of their annual range even as equity and bond volatility rose. Such compression rarely lasts, and a sharp move may follow if macro conditions shift again. Positioning is growing but does not yet appear overheated: bitcoin futures open interest rose 3.4% to $51.12 billion, long positions increased to 52.1% of the market, and Binance funding averaged about 9% annualized.
ETF demand also improved. US spot bitcoin funds logged seven consecutive days of inflows through July 22, their strongest streak since early May, with cumulative net flows reaching $51.8 billion.
Ether funds attracted $196 million over the same period, lifting total net inflows to $11.2 billion. One strong week, though, is not enough to establish a lasting break from traditional markets.
Source: Bitcoin News
Trading involves risk.
Risk Disclaimer
