Bitcoin Breaks $66,500 as ETF Inflows and US Crypto Policy Fuel Rally

Bitcoin surged above $66,500 for the first time since July, supported by fresh US crypto regulatory developments, renewed spot Bitcoin ETF inflows and a significant technical breakout. Bitwise Chief Investment Officer Matt Hougan described the latest developments as creating an increasingly bullish environment for Bitcoin and the broader cryptocurrency market.

One major catalyst was the US Securities and Exchange Commission’s introduction of its Regulation Crypto Assets proposal. The framework aims to simplify fundraising requirements for crypto companies while providing a safe-harbor mechanism that could allow qualifying digital assets to move outside the investment contract classification. Hougan highlighted the proposal as an important step toward giving crypto businesses clearer options for raising capital in the United States.

Liquidity conditions also attracted attention after the US Treasury announced plans to double purchases under its long-term government bond buyback program. Market participants could view increased Treasury buybacks and improving liquidity conditions as supportive for scarce assets such as Bitcoin.

Meanwhile, the US administration is holding a closed-door meeting in Washington with executives from major cryptocurrency companies, including Coinbase and Ripple. Discussions are expected to focus on tokenization and progress surrounding the Clarity Act as policymakers seek to address remaining regulatory obstacles for the industry.

Institutional demand has also strengthened. US spot Bitcoin ETFs recorded $189.3 million in daily net inflows, reversing the previous trend. BlackRock’s IBIT led the recovery with $223.1 million in inflows. Combined Bitcoin ETF net assets reached approximately $79.3 billion, equivalent to roughly 12% of Bitcoin’s market capitalization.

Bitcoin’s technical outlook has improved alongside the fundamental catalysts. BTC broke above a major descending trendline extending from October and climbed past its 23-day and 50-day moving averages. With a substantial concentration of previous trading volume now sitting below the current price, those levels could provide technical support.

Bitcoin remained above $66,000 at publication time, with stronger ETF demand, regulatory momentum and improving chart structure reinforcing bullish sentiment across the crypto market.