Client Access 
Communications
The cryptocurrency market continued its recovery during the July 15–21 period, despite several episodes of volatility related to technology markets, oil prices and uncertainty surrounding U.S. monetary policy. After beginning the period near $65,000, bitcoin temporarily pulled back toward $64,000 before rebounding above $66,000 on July 21. At the time of writing, BTC is up approximately 5% over seven days and is trading at its highest level in more than a month.
This advance remains modest compared with bitcoin’s major bull-market phases, but it represents a significant improvement from the market conditions observed at the end of June. BTC has now managed to move away from its recent low of approximately $57,000 to $58,000 while absorbing several developments that could have interrupted its recovery. Pullbacks have generally been limited and quickly used by some investors to increase their positions, suggesting that selling pressure continues to ease.
The release of U.S. inflation data initially supported the market. The Consumer Price Index declined by 0.4% in June, while core inflation was unchanged for the month. Over a twelve-month period, however, headline inflation still stood at 3.5%, while core inflation reached 2.6%. These results reassured investors who were concerned about an immediate interest rate increase by the Federal Reserve.
Bitcoin’s positive reaction once again demonstrates the importance of monetary conditions for digital assets. Lower inflation can reduce the need for further monetary tightening, improve liquidity conditions and make risk assets more attractive. The market now believes that a rate increase at the July 28–29 meeting remains unlikely, although several Federal Reserve officials continue to call for additional evidence before concluding that inflation is truly under control.
The situation therefore remains nuanced. Slower inflation is good news, but elevated oil prices could eventually place renewed pressure on transportation and production costs. Some Federal Reserve officials have also indicated that they would be prepared to act if inflation stopped slowing. The central bank’s next meeting will therefore represent an important test for the current rebound.
Bitcoin experienced a temporary pullback late last week alongside a sharp decline in semiconductor and artificial intelligence stocks. Cryptocurrencies have displayed a significant correlation with technology companies for several months, as both asset classes depend partly on investors’ appetite for risk. When technology markets corrected, BTC returned toward $64,000, while Ethereum fell close to $1,850.
The pullback nevertheless remained orderly. It did not trigger the cascading liquidations observed earlier this year, and bitcoin retained a large portion of its gains. Renewed buying in Asian technology stocks on July 21 subsequently contributed to a broader market rebound. BTC climbed above $66,000, Ethereum recovered to nearly $1,940, and several major cryptocurrencies recorded gains exceeding those of bitcoin.
Flows into spot Bitcoin ETFs probably represent the most encouraging signal of the period. These products recorded five consecutive sessions of net inflows between July 14 and 20, attracting approximately $727 million. This was their longest positive streak since late April. During the four sessions falling directly within the July 15–20 period, net inflows totalled nearly $546 million.
The July 20 session was particularly strong, with approximately $227 million in net inflows. BlackRock, Fidelity and ARK all contributed to the result, although Grayscale continued to record some withdrawals. This improvement follows eight weeks of substantial outflows and confirms that institutional investors are gradually beginning to view current prices as attractive again.
It would be premature to speak of a complete return in institutional demand. Outflows recorded during the previous months totalled billions of dollars, and spot market trading volumes remain relatively modest. Nevertheless, the new inflow streak represents an important change in direction. If it continues, it could provide bitcoin with a more stable demand base and make it easier to break through the next technical resistance levels.
The area between $64,000 and $65,000, which recently represented resistance, could now become an initial support level. As long as bitcoin remains above this region, its short-term structure should continue to improve. The next significant obstacle is located around $68,000. A sustained move above this level would further confirm the reversal of the May and June correction and open the door to a return toward $70,000, followed potentially by $72,000.
Conversely, a decline below $64,000 would bring attention back to $62,000 and then the psychological $60,000 threshold. The difference compared with previous weeks is that the market now has several intermediate support zones. BTC therefore no longer needs to defend its recent low immediately to preserve its recovery structure.
Ethereum once again outperformed bitcoin during the period. ETH rose approximately 8% over seven days, compared with nearly 5% for BTC. After breaking above $1,850, it briefly exceeded $1,900 and was trading near $1,940 on July 21. This stronger relative performance represents an interesting change after several months during which Ethereum had consistently lagged behind.
Flows into Ethereum ETFs also improved, although they remained more irregular. Between July 15 and 20, these products recorded slightly more than $100 million in net inflows. A negative session of $28 million was quickly followed by two positive days, including approximately $38 million on July 20. BlackRock remains the main source of demand among Ethereum ETFs.
Ethereum must now succeed in holding the area between $1,850 and $1,900. A move above $1,950, followed by the psychological $2,000 threshold, would send a much more convincing technical signal. This level has already rejected several recovery attempts and therefore represents an important test in determining whether the recent improvement can become a more durable trend.
Fundamental developments remain favourable for Ethereum. The network continues to hold a dominant position in stablecoins, decentralized finance and the tokenization of financial assets. The challenge remains to convert this activity into more visible demand for ETH itself. Growth in ETFs and increasing interest from treasury companies could contribute to this transition, although the market will probably require several weeks of positive results before fully regaining confidence.
BitMine, the largest Ethereum treasury company, added 7,430 ETH during the week, bringing its holdings to approximately 5.78 million ETH. The company would therefore hold nearly 4.8% of the circulating supply and is approaching its stated target of 5%. However, the pace of its purchases slowed significantly, as some of its capital was instead used to repurchase approximately $86 million of its own shares.
This strategy illustrates both the potential and the risks associated with crypto treasury companies. Their demand can reduce the available supply and support prices, but an excessive concentration of assets among a small number of companies can also create new sources of volatility. However, the fact that BitMine uses a significant portion of its ETH to generate staking income helps provide a clearer economic function for its reserves.
U.S. regulation also provided support for the market. A hearing held on July 17 renewed attention on the CLARITY Act, proposed legislation intended to better define the respective responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission. One of its objectives is to establish more predictable rules for platforms, custody services and digital assets that are not considered securities.
The main obstacle involved an ethics provision governing senior government officials’ financial interests in digital assets. Reports published on July 21 indicated that an agreement may have been reached on this issue. The news contributed to the rebound in bitcoin and altcoins, as this provision was considered one of the last obstacles preventing the bill from advancing in the Senate.
Caution nevertheless remains necessary. The final text had not yet been released, and no Senate passage had been confirmed at the time of writing. The legislative calendar is also tight ahead of the recess scheduled for early August. This therefore represents potential progress rather than a secured victory.
The eventual passage of the CLARITY Act would nevertheless represent a defining step for the industry. A clearer division of responsibilities between the SEC and the CFTC would reduce legal uncertainty and could encourage more financial institutions to offer digital asset services. It would also allow companies to invest with a better understanding of the rules governing the trading, custody and issuance of tokens.
Strategy, for its part, continued to prioritize strengthening its balance sheet. The company did not purchase any bitcoin during the week ended July 19. Instead, it sold approximately $263.5 million of common stock, allowing it to increase its U.S. dollar reserves to approximately $3.225 billion. These reserves are intended to cover dividends on its preferred shares and interest on its debt.
The company continued to hold 843,775 bitcoins, acquired at a total cost of approximately $63.69 billion, or an average price of $75,476 per bitcoin. The current market value of these holdings therefore remains below their average cost. This situation partly explains why Strategy is currently choosing to accumulate liquidity rather than immediately resume its aggressive purchases.
This decision can be interpreted as a sign of prudence rather than an abandonment of its strategy. A larger liquidity reserve reduces the risk that the company could be forced to sell bitcoin to meet its obligations. It also allows the company to wait for better conditions before completing new transactions. Over the long term, this more disciplined management could help make the crypto treasury company model more credible.
Among other networks, Solana continued to benefit from the growth of tokenization. Tokenized asset volumes on its network reached a new high during the second quarter, notably due to equities and other financial assets represented on the blockchain. Tokenization remains one of the industry’s most promising sectors, as it allows public networks to be used for the issuance, trading and settlement of traditional assets.
Cardano also reached an important milestone with the activation of the Van Rossem upgrade on July 18. The upgrade moves the network to version 11, reduces certain smart contract costs and prepares it for a future improvement in processing capacity. Most importantly, it is the first major Cardano upgrade to be proposed, debated and approved entirely through its decentralized governance system.
Although these changes will not have an immediate effect on most ADA holders, they demonstrate that the network can now evolve its protocol without depending entirely on the company that originally developed it. This autonomy represents an important milestone for a project that has long sought to build truly decentralized governance.
The altcoin market showed signs of broader participation during the most recent sessions. XRP rose approximately 6% over seven days and was trading near $1.13, while Solana was trading around $78. Assets related to decentralized finance also experienced a particularly strong session on July 21. This rotation remains limited, but it shows that liquidity is beginning to move beyond bitcoin.
The market is not yet experiencing a true altcoin season. Bitcoin continues to maintain high market dominance, and several assets remain well below their previous highs. A broader recovery will probably require BTC to stabilize above $68,000 without absorbing all available demand. Ethereum will also need to sustainably reclaim the $2,000 level to confirm that investors are once again willing to increase their risk exposure.
Derivatives markets are also showing renewed interest. Open interest in Bitcoin futures increased during the July 21 rebound, while options activity remains positioned toward further upside. However, investors continue to purchase downside protection, indicating that optimism has not yet become excessive.
In summary, the July 15–21 period strengthened the impression that the market is gradually emerging from its corrective phase. Bitcoin returned to its highest level in more than a month, ETFs recorded their strongest inflow streak since April, and Ethereum outperformed. Developments surrounding the CLARITY Act, tokenization and technological upgrades across various networks are also adding fundamental support to the recovery.
Optimism should remain measured, as trading volumes are still relatively low and the Federal Reserve’s next decision could quickly alter market sentiment. The geopolitical situation, oil prices and the financial results of major technology companies will also remain potential sources of volatility.
Nevertheless, the overall structure is more encouraging than it was a few weeks ago. The market is no longer relying solely on a technical rebound: institutional demand is gradually returning, Ethereum is displaying stronger relative performance, and regulatory discussions are advancing. A sustained move above $68,000 for bitcoin would further confirm this improvement. Until then, the ability to hold the $64,000 to $65,000 area and continued ETF inflows will be the main factors to monitor.
The presented information is as of July 21st, 2026, unless otherwise indicated and is provided for information purposes only. The information comes from sources that we believe are reliable, but not guaranteed. This statement does not provide financial, legal or tax advice. Rivemont Investments are not responsible for any errors or omissions in the information or for any loss or damage suffered.
