Key facts
- Bitcoin and the broader crypto market are rising amid reports of White House agreement on the Clarity Act's ethics package.
- Spot Bitcoin ETFs have seen over $700 million in inflows across five trading days, the longest streak since May.
- On-chain data indicates long-term holders are accumulating Bitcoin, while medium-sized wallets are selling.
- Significant activity in Bitcoin futures and options includes a large bull call spread purchase targeting $72,000.
- Bitcoin's price has surpassed its 50-day moving average, signaling a potential acceleration of gains.
Bitcoin and the broader cryptocurrency market are experiencing a rally, fueled by positive developments regarding the Clarity Act and increased institutional and retail participation. The White House's agreement on an ethics package for the Clarity Act could advance the legislation, potentially leading to greater institutional involvement.
Institutional investors are showing renewed interest, with U.S.-listed spot Bitcoin ETFs attracting over $700 million in inflows over five consecutive trading days, marking the longest streak since May. This contrasts with significant outflows experienced earlier in the summer.
On-chain data reveals that long-term holders, defined as those holding BTC for at least six months, are actively acquiring coins. While large Bitcoin whales have been increasing their positions over the past two months, medium-sized wallets have been selling, a divergence noted as a potentially constructive signal for Bitcoin's medium-term outlook.
Analysis from Glassnode suggests the market is becoming more balanced, with sustained long-term conviction supporting prices while speculative activity remains contained. Furthermore, the Bitcoin futures and options markets show growing participation, including a notable purchase of bull call spreads targeting $72,000 by month-end.
Technically, Bitcoin's price has broken above its 50-day moving average, indicating a strengthening near-term trend. A sustained hold above this level could attract further buying interest, with resistance expected at the 100-day moving average around $70,173 and the 200-day moving average near $72,800. A decisive move above the 200-day average would signal the end of the bear market that began last October.
However, risks remain, particularly from upcoming U.S. Treasury bond issuances, which could reduce liquidity in the financial system and negatively impact risk assets. Significant net new issuance is expected through Labor Day, posing a near-term headwind.