Bitcoin Breaks $65K as ETF Money Returns & CLARITY Act Showdown Explodes | Daily Crypto Roundup

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Welcome back to the Daily Crypto Roundup. Bitcoin is back above $65,000. Ethereum is pushing higher. XRP is gaining. Institutional money is returning to the ETFs. And perhaps most importantly, inflation has delivered another positive surprise for the crypto market. But away from the price charts, one of the biggest political battles in the history of crypto is reaching a critical stage in Washington.
The White House is reportedly preparing for a high level meeting with senators as they desperately try to save the Clarity Act from collapsing over concerns surrounding Donald Trump's own crypto interests. We have also got a remarkable statement from Strategy CEO Phong Le, who says the world's largest corporate holder of Bitcoin feels secure unless Bitcoin falls all the way down to somewhere between $8,000 and $10,000.
And later, Chainlink is showing some real signs of life after a major $2.5 billion migration onto its cross-chain infrastructure helped send Link higher. So there is plenty to get through today. At the time of recording, Bitcoin is trading at approximately $65,300, up around 1% over the past 24 hours. Ethereum is close to $1,930 and up around 3%.
XRP is sitting at approximately $1.12, while Solana is trading close to $78.
And before we go any further, a quick reminder that anyone who signs up to Kraken through the link in the episode description can qualify for our 20 XRP giveaway. It also directly supports the podcast at absolutely no extra cost to you, so check out the Kraken link at the top of the description.
Now let us start with what is probably the most important market story of the day, because Bitcoin has climbed back above $65,000 after the United States delivered another encouraging inflation report. The June producer price index came in significantly softer than economists had expected. Headline PPI actually fell by 0.3% during the month, compared with forecasts for no change at all. On an annual basis, producer prices increased by 5.5%, considerably lower than the 6.2% economists had expected. Core PPI, which strips out the more volatile food and energy categories, also came in below forecasts. Why does this matter for Bitcoin? Because one of the biggest problems facing crypto throughout this entire period has been the threat of interest rates remaining higher for longer, or potentially even going higher again. Inflation has forced central banks to keep monetary policy restrictive, and higher rates generally make speculative assets such as cryptocurrencies less attractive. But when inflation comes in below expectations, that argument begins to weaken. And New York Federal Reserve President John Williams added to the optimism by saying, there are encouraging reasons to believe inflation has now peaked and should gradually decline over the coming quarters. He expects overall inflation to fall to around 3.25% by the end of this year, before continuing towards the Federal Reserve's 2% target. That combination of softer inflation data and more dovish language helped Bitcoin break above $65,000 for the first time in several weeks. This does not mean the battle against inflation is over. It does not guarantee interest rate cuts, and we all know how quickly expectations can change. But it is another piece of evidence moving in the direction crypto investors have been waiting for. And institutional investors appear to be coming back as well. United States spot Bitcoin ETFs attracted approximately $181 million of net inflows on Tuesday, just one day after suffering around $425 million of outflows. BlackRock's iBit was responsible for most of those inflows, bringing in approximately $139 million, while Fidelity added another $21 million.
Interestingly, not a single Bitcoin ETF recorded a net outflow during the session. Ethereum ETFs also attracted approximately $58 million, entirely through BlackRock's fund.
Total assets held by the Bitcoin ETFs have now recovered to approximately $78 billion, while the Ethereum ETFs have crossed the $10 billion mark. Now I would not get carried away with one day of positive ETF flows. July has been extremely inconsistent, with money moving in and out of these funds from one session to the next. But what matters is that when the macroeconomic picture improves, we are still seeing significant amounts of capital willing to return to crypto. And that brings us to the enormous political story developing in Washington. Senior White House officials are reportedly preparing to meet senators to try to solve what has become perhaps the biggest remaining obstacle facing the Clarity Act. Ethics rules surrounding politicians and their personal crypto interests. Democrats have demanded restrictions on the president, vice president and members of Congress having personal business interests in the cryptocurrency industry. And of course, that immediately creates an enormous problem because President Trump himself has significant connections to the crypto sector. Some Democrats have made clear they could oppose the entire bill unless tougher ethics provisions are included.