Bitcoin rally has broad-based support as institutions, whales, options traders pile in

Jul 21, 2026, 11:37 a.m. 3 min readPresident Trump is said to have agreed to the wording of an ethics clause in the Clarity Act. (Jesse Hamilton/CoinDesk)SummaryThis is an excerpt from CoinDesk newsletter 'Daybook.' Sign up here, if you haven't already.Bitcoin BTC$66,262.37 and the broader crypto market are rising amid reports that the White House has agreed to the wording of an ethics package for the Clarity Act. The move could improve the chances of the long-pending legislation progressing through Congress, paving the way for stronger institutional participation.It remains to discern who is buying the cryptocurrency and whether the price rise is backed by solid hands. The answer to the latter is yes. The most obvious buyers are institutions, primarily through U.S.-listed ETFs. The spot bitcoin funds have attracted over $700 million in investor money across five trading days, the longest streak of inflows since May, according to SoSoValue data. "This renewed institutional interest stands in contrast to the severe selling pressure and record redemptions experienced earlier in the summer, notably $7.5 billion between mid-May and June," Tagus Capital said in an email.Onchain wallet data shows long-term holders are also snapping up coins. These are addresses with a history of keeping their BTC for at least six months."Large Bitcoin whales have been building up their positions over the last two months, while medium-sized wallets have been selling. This divergence in behaviour could be a ‘constructive signal’ for BTC in the medium term, according to CryptoQuant [data]," Alex Kuptsikevich, the chief market analyst at FxPro, said in an email.Blockchain analysis firm Glassnode noted that the market looks much more balanced now than it did a month ago. "Overall, the market appears increasingly balanced, with long-term conviction providing support while speculative participation remains contained," it said.There are also signs of growing participation in BTC futures and options. Recently, a trader (or group of traders) purchased large bull call spreads in bitcoin, targeting $72,000 by month-end. In short, the buyer profile right now appears diverseRisks, however, remain. The most important near-term headwind is U.S. Treasury bond issuances, which could drain liquidity from the system and weigh on risk assets."Treasury bill settlements are expected to result in net new issuance of $56 billion, followed by an additional $37 billion on Thursday and a smaller coupon settlement of $13 billion on Friday. Treasury bill issuance will likely remain heavy until Labor Day, creating a headwind for risk assets as we move through the summer," Mott Capital Management's Founder Michael Kramer said in a blog post.Today’s signalBTC's rally is gathering pace. (TradingView)The chart shows BTC’s price action alongside its 50-, 100-, and 200-day simple moving averages, represented by red, white, and blue lines, respectively. BTC’s rally has gathered pace after recently breaking above the 50-day average, a widely tracked gauge of the near-term trend. A sustained hold above this level could attract more buyers and accelerate gains toward the 100-day average at $70,173. The next major resistance sits at the 200-day average, currently positioned just above $72,800. A decisive break above it would confirm that the bear market that began in October last year has ended and a new bull run has begun.Related Assets12345678910