Crypto Surges Again: How Markets Bounced Back After a Brutal Crypto Week
Bitcoin’s back above $70K. Ethereum’s flirting with $4,000. And the whole market’s breathing fire again—just days after getting crushed. What changed?
The Rebound Playbook
Institutional money isn’t just dipping toes anymore—it’s cannonballing into the pool. BlackRock’s spot ETF inflows hit $1.2B this week. Grayscale’s outflows? Slowing to a trickle. The smart money’s voting with its wallet.
Macro Winds Shift
Fed chair Powell’s latest testimony dropped hints of rate cuts by September. Traders piled into risk assets like crypto the second Treasury yields wobbled. Never underestimate the market’s addiction to cheap money.
Derivatives Domino Effect
Perpetual swap funding rates turned positive across major exchanges. When leveraged traders stop betting against the market, the squeeze up gets violent. Cue the 15% overnight pumps.
The rally’s got legs—until the next ‘macro surprise’ sends Wall Street’s algo-trading hedge funds into panic mode. Place your bets.
Crypto rebounds after a hit to ‘Crypto Week’
The rally followed a mix of ETF inflows and macroeconomic uncertainty, but the most immediate catalyst appears to be the market rebound after a major procedural defeat in Congress. On July 16, a vote failed to advance three key crypto-related bills: the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act.
The legislation was scheduled to be debated during the week of July 14, informally dubbed “Crypto Week”, which may now face delays. However, Republicans are working to resolve internal disagreements that led to the failed vote.
What is more, U.S. President Donald Trump has stated that some of the legislation could be passed as soon as Wednesday. If some of the bills pass, this would send a strong signal to the crypto industry that U.S. legislators are prepared to give clarity on crypto assets.
This regulatory clarity is driving significant institutional capital into crypto, as more and more investors view Bitcoin as a hedge against macro risk and inflation. Notably, ETF inflows have reached nearly $20 billion since April, outpacing any other asset class.
