Bitcoin Stuck in Range as Crypto Markets Diverge from Risk Rally
Crypto markets have continued to trade in a muted fashion, diverging from the broader risk rally that has seen US equities reach all-time highs. Despite hopes for a US-Iran agreement and renewed AI-trade optimism lifting stocks, major cryptocurrencies such as Bitcoin and Ether remain largely unaffected, hovering near $64,000 and $1,800 respectively.
The divergence between cryptocurrencies and traditional risk assets has become increasingly pronounced since the Iran conflict began in late February. Unlike previous market cycles, Bitcoin has failed to mirror gains in US equities and has attracted only limited safe-haven demand.
Regulatory clarity remains elusive, with progress on the CLARITY Act stalled in the Senate as lawmakers debate ethics provisions linked to President Trump's crypto interests. The ongoing Coldcard wallet exploit, which has resulted in over 1,755 BTC being drained from thousands of wallets, has reignited security concerns across the crypto ecosystem.
Despite modest ETF inflows in July, institutional participation remains sluggish, and market liquidity is reduced. Seasonal August weakness could continue to keep Bitcoin trapped within its fresh $62,000-$66,500 tight range.