Bitcoin struggled to make ground over the past few weeks, but finally managed to push its way above the $65,000 marker. Followed by a quick retrace, it may signal the end of a bottom period for the cryptocurrency.

This week, Bitcoin briefly pushed over the $65,000 marker. Expectations had been that data provided by the US Bureau of Labor Statistics would be hotter than anticipated. Yet it arrived showing that inflation for June had actually slowed. This caused many investors to rethink the prospect of interest rate rises by the FED and turn to riskier assets, briefly spiking the price of Bitcoin and other cryptocurrencies.

Bitcoins Fluctuating Price

As of July 16th 2026, the Bitcoin price stands at $64,022. Volatility has been the name of the game in the past 24 hours, as it fluctuated from $65,347 on Wednesday, the 15th, after dropping to the $61,00 marker the Monday before. However, in the past 5 days, it has managed to gain 0.39% due to unexpectedly positive inflation data in the United States. All of this is endemic to the current climate crypto is in, where macroeconomic events are causing large price changes. It is also worth noting that Ethereum posted even larger gains, with other cryptocurrencies rising.

Bitcoin's price in the wider context shows just how wild its position is. It is up +2.7% on the week before, yet down -1.1% compared to a month prior. Added to this is that it has lost 45.8% of its value in a year.

Behind these movements has been the war in Iran. A blocking of the Strait of Hormuz, where a large share of the world's oil supply passes, has increased fuel and energy costs. This hits everything, from food prices to transport, and pushes up inflation, which in turn can impact interest rates. A report by the US Bureau of Labor Statistics showed inflation had not risen to the level anticipated. This made people turn back to riskier assets such as cryptocurrency.  

On Tuesday, Spot Bitcoin ETF products suddenly showed strong inflows. Around $181 million came into them after the CPI data was released. Yet this must be balanced by the day before, when $424 million had gone out. This increased volatility is not usually an indicator of position building, but a sign of confusion in the market.

Oddly, Ether actually far outpaced Bitcoin. $96 million came into Ether ETF products in the period between Monday and Wednesday. This was in addition to the $84 million from the week before. June had been a poor month for them, at one point losing $82 million in a day alone.

The July FED meeting will be a key indicator of how this holds up and the direction that will be followed. Positivity here could spell the return of consistent inflows to crypto ETFs and impact their price.

The Impact of the CLARITY Act

In the coming year, investors and those looking to see the path of Bitcoin must also keep their eyes on the CLARITY Act. This will allocate regulatory jurisdiction over digital assets and provide clear statutory rules for exchanges, developers, and investors. Yet it is not without detractors, and many have come to believe that the bill will not pass this year. Recent events may signal otherwise, however.

A sticking point is an ethics clause in the bill. This would stop top government officials and their families from making money from cryptocurrency. A meeting is being arranged with the White House to discuss this with senators, and some believe that this signals a bigger shift towards a more optimistic tone.

Are There Signs That This Is the Bottom?

Selling pressure is beginning to ramp down. Those who made purchases of Bitcoin one or two years ago, in the latter part of the last bull market, are the hold on for dear life buyers who are instigating this. One analyst online highlighted that coins moving onward at a loss last did so from July 2024 to July 2025. In this period, Bitcoin increased from $62,800 to $107,000.

An inverted head and shoulders pattern has also formed on the charts. Three price troughs have formed, with the middle decline extending beyond the lows around it. Should Bitcoins value move above the topline, it could indicate that the bottom has been reached, and Bitcoin is back on a more bullish upward trend.

Bitcoin is also in its four-year cycle. This is when a halving event occurs, which reduces the reward for mining Bitcoin. Peaks usually arrive around 18 months after this, which happened this time, though with a slightly altered timescale.

Bitcoin's all-time high was $126,198.07, and it was reached on October 6th, 2025. In the current geopolitical climate, and with domestic US data being tepid, it suggests a retracement to this level may be some way off.