Bitcoin Holds Near US$66K as CLARITY Act Redraft and Middle East Tensions Shape Market Sentiment

VG Markets · 2026-07-23T05:56:55Z
Bitcoin Holds Near US$66K as CLARITY Act Redraft and Middle East Tensions Shape Market Sentiment

Bitcoin traded around US$66,004 by 17:37 ET on Wednesday, remaining near a five-week high following a rebound supported by renewed spot Bitcoin ETF inflows.

Regulatory developments

A revised Senate draft of the CLARITY Act, circulated on July 22, would make restrictions on cryptocurrency-related activities by federal officials temporary rather than permanent. The revision could help attract support from some Democratic lawmakers.

Senate Majority Leader John Thune's office said lawmakers are aiming to consider the legislation before the August recess. Republicans currently hold 53 Senate seats, meaning bipartisan support would still be required to reach the 60-vote threshold needed to overcome a filibuster.

Middle East tensions

Geopolitical risks also remained in focus as the conflict involving the United States and Iran continued for an 11th consecutive day. U.S. officials said additional military action remained possible, while Iranian authorities warned of further escalation.

Brent crude rose to US$95.84 per barrel, its highest level in roughly six weeks, as concerns over potential supply disruptions increased following developments involving the Strait of Hormuz and the Red Sea.

Higher energy prices have renewed market attention on inflation risks and their potential implications for future U.S. monetary policy.

Major cryptocurrencies

  1. Ether: +0.5% to US$1,933.44
  2. Cardano: +1.3%
  3. XRP: -0.4% to US$1.1418
  4. Solana: -0.1%
  5. BNB: -0.3%
  6. Dogecoin: -0.7%

Market focus

Investors are monitoring both regulatory developments in Washington and geopolitical tensions in the Middle East. Progress on cryptocurrency legislation could influence market sentiment, while sustained strength in oil prices may affect expectations for inflation and interest rates.

Market participants are also watching the Senate's legislative calendar together with movements in Brent crude prices as broader indicators of risk sentiment.

Sources: Investing.com, CoinDesk, Reuters, NBC News and Rigzone. This article is for informational purposes only and does not constitute investment advice.