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Bitcoin Surges Above $66,500 on Regulatory Momentum and ETF Demand

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Bitcoin has broken above $66,500 for the first time since July, driven by a combination of fresh US crypto regulatory developments and renewed spot Bitcoin ETF inflows. The market's technical breakout has also contributed to its rally.

The introduction of the Regulation Crypto Assets proposal by the US Securities and Exchange Commission has been seen as an important step toward giving crypto businesses clearer options for raising capital in the United States, according to Bitwise Chief Investment Officer Matt Hougan.

Liquidity conditions have also improved after the US Treasury announced plans to double purchases under its long-term government bond buyback program, which could be viewed as supportive of scarce assets like Bitcoin.

US spot Bitcoin ETFs recorded $189.3 million in daily net inflows, reversing a previous trend, while BlackRock's IBIT led the recovery with $223.1 million in inflows.

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