Bitcoin and Ethereum Eye Washington as Clarity Act Hearing Looms

Crypto markets are holding steady despite global economic jitters. While South Korean interest rate hikes rattled stock markets, digital assets maintained their positions. Traders are now focused on the July 17 hearing regarding the Clarity Act, a piece of legislation that could provide much needed regulatory certainty before Congress enters its summer recess.

Bitcoin remains firm, trading between $64,500 and $65,000. Institutional interest remains a primary driver, evidenced by BlackRock adding 139 million dollars worth of Bitcoin to its portfolio. Even a large transfer of 5,908 BTC from an eight year old inactive wallet failed to shake investor confidence, as the market seems more interested in holding higher ground than selling into rallies.

Ethereum is also showing quiet strength, trading near $1,900. The asset recently saw over 30 million dollars in short liquidations and outperformed Bitcoin with a 17 percent jump in the ETH to BTC ratio. Spot Ethereum ETFs are finally seeing net inflows again, breaking an eight week streak of outflows and signaling that institutional appetite is returning.

Investors should monitor the outcome of tomorrow's hearing closely. If lawmakers offer a constructive path forward for the Clarity Act, it could build on the current momentum for both Bitcoin and Ethereum. A positive tone from Washington might be the catalyst needed for Ethereum to push toward the 2,000 dollar level.