Bitcoin and Ethereum push crypto market to $2.21 trillion rally
July 12, 2026
Bitcoin and Ethereum, among other leading altcoins, have been driving the momentum in the cryptocurrency market, resulting in an overall increase in market capitalization to $2.21 trillion. Bitcoin is currently trading at around $64,400, with Ethereum experiencing a 1.7% gain.
Various sectors within the cryptocurrency market have seen a mixed but generally positive performance, with the Real World Asset (RWA) category leading the way with a 3% increase. Other sectors have also posted gains ranging between 0% and 2%. Bitcoin’s 7-day performance, with a 2.04% increase, is spearheading the market, with traders on social media discussing bullish technical analysis, particularly aiming for a breakout above $65K to trigger a short squeeze toward $67K.
The market sentiment has been uplifted by the SEC/CFTC joint framework announcement, which has classified major assets like Bitcoin and Ethereum as digital commodities, providing a sense of regulatory clarity. However, there is a bill, known as the “Clarity Act,” that aims to establish a comprehensive regulatory framework for digital assets in the US. This bill is currently in the process of merging Senate versions, and there is a need for it to go through a floor vote before the August recess to avoid delays caused by the shift to midterm elections.
Key issues surrounding this bill include a “safe harbour” provision for software developers and the incorporation of ethics rules that restrict crypto trading by government officials. The failure to pass this legislation could prolong the existing regulatory uncertainties, exposing crypto firms to potential “regulation-by-enforcement” scenarios.
The outcome of this bill represents a significant event risk for the market. Its successful passage could potentially unlock substantial institutional investments by offering legal clarity. On the other hand, a delay in its passing would only perpetuate the ambiguous regulatory environment.
The immediate trajectory of the cryptocurrency market heavily depends on Bitcoin’s price actions. Currently, the market cap is testing the 23.6% Fibonacci retracement level at $2.21 trillion, with the yearly high at $2.27 trillion. Maintaining support above $64K is crucial for the bullish case. A reversal in ETF flows is seen as a key trigger for sustaining momentum, especially as there were net outflows reported recently.
The positive trend in the market is a result of Bitcoin reclaiming critical technical levels and a gradual shift towards altcoins amidst favorable regulatory conditions. The next significant move will likely hinge on institutional ETF flows turning positive. Bitcoin, Ethereum, and XRP are showing signs of improvement amid a generally optimistic market sentiment.
