Bitcoin Tops $65K as Japan Clears ETF Bill and Senate Eyes Clarity Act Vote

Bitcoin surged to a three-week high on Tuesday after cooler-than-expected U.S. inflation data lifted sentiment across digital asset markets. The Consumer Price Index fell 0.4% in June, its largest monthly drop since April 2020, while annual inflation eased to 3.5%, below analyst forecasts. Bitcoin briefly touched $65,100 before pulling back to the mid $64,000 range, posting a daily gain of 3.5% and a weekly gain of 4.4%. Total crypto market cap rose 3% to $2.28T on trading volume exceeding $73.8B in 24 hours.

The broader market joined the rally, with Ethereum climbing 5.2% to $1,880 and Hyperliquid leading the top-ten gainers at 5.4%. Traders grew more confident the Federal Reserve will hold rates steady at its July 28-29 meeting after core CPI printed at 2.6% year-over-year, down from 2.9% in May. The Crypto Fear and Greed Index inched up to 25, remaining in extreme fear territory but showing a slower pace of panic.

Japan Advances Landmark Crypto ETF Legislation

Hours after the CPI release, Japan's Upper House committee approved legislation to reclassify Bitcoin and other cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act. The bill would also lower crypto taxes to a flat 20% and, if signed into law, could allow spot Bitcoin ETFs to launch on the Tokyo Stock Exchange as early as 2027. The combination of easing U.S. inflation and friendlier overseas regulation gave crypto traders another reason to stay bullish through the session.

Back in Washington, the U.S. Senate returned from recess this week facing a narrow window to advance the Digital Asset Market Clarity Act before the August 7 congressional break. Lawmakers must still clear a 60-vote filibuster threshold, and three interlocking disputes over ethics rules, developer protections under the Blockchain Regulatory Certainty Act, and stablecoin yield language continue to block the seven to nine Democratic votes needed for passage. Investor Kevin O'Leary put the bill's odds at 50-50, warning that geopolitical tensions could distract lawmakers even as the crypto industry pushes hard for a resolution before the Senate disperses for the summer.