Crypto Markets Surge as Clarity Act Progress and Chip Rally Boost Sentiment

Speculation that President Donald Trump had accepted a key ethics requirement tied to the crypto market structure bill helped drive the latest market gains.

The crypto market surged after reports indicated that a major obstacle standing in the way of the long-awaited U.S. Clarity Act may have been resolved.

Eleanor Terrett, host of Crypto in America, reported on X that President Donald Trump had agreed to a significant ethics provision included in the crypto market structure legislation. The proposed language has reportedly been circulated among a group of Senate Republicans, representing a major development for the bill’s progress.

The ethics clause has been one of the biggest challenges preventing the legislation from advancing through the Senate. The bill is designed to establish a clearer regulatory framework for digital assets by defining the boundaries between digital commodities and securities, replacing years of uncertainty driven largely by enforcement actions.

Bitcoin climbed above $66,000, gaining 3.5% over 24 hours and reaching its highest level in more than a month. Other major cryptocurrencies, including Ether, BNB, and XRP, posted stronger gains. The CoinDesk DeFi Select Index was among the biggest winners, jumping 9%.

Additional momentum came from Asia, where a rebound in semiconductor stocks reversed last week’s technology-driven selloff that had pressured crypto markets. The recovery in chip shares helped fuel a broader risk-on move across markets.

Technical Outlook

Traders are now focused on the $68,000 level. Alex Kuptsikevich, chief market analyst at FxPro, said that the area near $68,000 represents the 61.8% Fibonacci retracement level from the May-June decline. A sustained move above that zone could provide further confirmation of a potential trend reversal.

Derivatives Market Activity

Bitcoin momentum:
Signs of renewed participation from derivatives traders are emerging as Bitcoin pushes higher. After BTC moved above $66,000 for the first time since June 17, futures open interest increased to 770,000 contracts from below 750,000 a day earlier.

The rise in futures activity suggests fresh capital entering the market. Bitcoin’s 24-hour open-interest-adjusted cumulative volume delta (CVD) is currently the strongest among major cryptocurrencies, indicating that buyers are driving the move through aggressive market orders rather than passive limit orders.

Ether and altcoin trends:
Ether futures are showing similar signs of increased participation, while open interest in XRP and Solana futures has remained relatively unchanged.

Dogecoin activity:
Dogecoin has also seen a notable increase in futures open interest, reaching 15.50 billion tokens, its highest level since May 5. However, DOGE’s negative 24-hour CVD suggests sellers remain more active in the market.

Broader altcoin inflows:
Open interest has also increased across several altcoins, including Cardano, Stellar, and Chainlink, pointing to wider capital inflows. Many of these tokens are also showing positive CVD readings, indicating stronger buyer participation.

Bitcoin Volatility and Hedging

Bitcoin’s 30-day implied volatility index (BVIV) stopped declining even as prices moved higher. Typically, BVIV and spot prices have an inverse relationship, so the recent volatility shift raises questions about whether the rally can continue.

One possible explanation is that traders are adding downside protection through options as prices rise, slowing the decline in volatility. Ether’s volatility index (EVIV) is showing a similar trend.

Options Market Signals

On Deribit, short-term put skew has eased as Bitcoin’s price increased, which is expected during a rally. However, puts remain more expensive than calls across all timeframes, reflecting continued demand for downside protection and ongoing call selling strategies used to generate yield.

At the same time, call options are dominating 24-hour trading volume for both Bitcoin and Ether, signaling increasing demand for exposure to further upside.

Token Developments

Solana’s tokenized asset market reached a record $5.8 billion in the second quarter, representing a 114% increase from the previous quarter and marking six consecutive quarters of growth. The expansion has been driven largely by tokenized equities.

The growth highlights rising institutional interest in tokenized assets and Solana’s ability to support high-volume transactions, strengthening its position as a bridge between traditional finance and blockchain infrastructure.

Although SOL declined more than 11% during the quarter, its performance was stronger than Bitcoin’s 15% drop over the same period. In July, Solana has gained 6%, compared with Bitcoin’s 13% recovery.

Meanwhile, the broader real-world asset tokenization market, excluding stablecoins, has expanded to more than $33 billion, nearly tripling from around $12 billion a year earlier.

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