Crypto markets rallied after reports suggested that President Donald Trump had agreed to a major ethics provision linked to the proposed crypto market structure bill, improving sentiment around the legislation’s future.

The gains came as traders reacted to speculation that the final hurdle preventing the long-awaited U.S. Clarity Act from moving forward may have been cleared.

Eleanor Terrett, host of Crypto in America, said on X that Trump had approved a key ethics clause included in the crypto market structure proposal. The language has reportedly been shared with several Senate Republicans, signaling meaningful progress for the bill.

The ethics provision has been a central sticking point delaying Senate approval. The legislation is designed to bring greater clarity to crypto regulation by establishing clear rules separating digital commodities from securities and reducing reliance on enforcement-based oversight.

Bitcoin broke above $66,000, rising 3.5% in 24 hours to reach its strongest level in more than a month. Several major altcoins, including Ether, BNB, and XRP, posted larger percentage gains, while the CoinDesk DeFi Select Index surged 9%.

The rally was also supported by strength in Asian markets. Semiconductor stocks, which had pressured crypto prices during last week’s selloff, rebounded sharply and helped drive a broader recovery in risk assets.

Bitcoin Technical Outlook

Traders are now watching the $68,000 mark as the next important level. Alex Kuptsikevich, chief market analyst at FxPro, said the area near $68,000 corresponds with the 61.8% Fibonacci retracement level from the May-June decline. A sustained break above this zone would provide additional evidence of a possible bullish reversal.

Derivatives Market Trends

Bitcoin futures activity:
Bitcoin’s price recovery is beginning to attract renewed interest from derivatives traders. After BTC moved above $66,000 for the first time since June 17, futures open interest climbed to 770,000 contracts from less than 750,000 a day earlier.

The increase indicates fresh capital entering the market. Bitcoin’s 24-hour open-interest-adjusted cumulative volume delta (CVD) is currently the strongest among major cryptocurrencies, showing that buyers are driving the rally through market orders rather than passive bids.

Ether and altcoin positioning:
Ether futures are showing similar momentum, while futures open interest for XRP and Solana has remained mostly unchanged.

Dogecoin futures activity:
Dogecoin recorded one of the largest increases in futures open interest, reaching 15.50 billion tokens, its highest level since May 5. However, DOGE’s negative CVD suggests that selling pressure remains dominant despite increased participation.

Altcoin market participation:
Open interest has expanded across cryptocurrencies including ADA, XLM, and LINK, signaling broader market involvement. Many of these tokens are also showing positive CVD readings, suggesting stronger buyer activity.

Volatility and Options Market Signals

Bitcoin’s 30-day implied volatility index (BVIV) stopped declining despite BTC’s price increase. Since volatility usually moves opposite to spot prices, the shift suggests some traders may be adding protective options positions as the market rises.

Ether’s volatility index (EVIV) is showing a similar pattern, indicating continued hedging activity among traders.

In the options market, Deribit data shows short-term put skew has decreased as spot prices recovered, though puts remain more expensive than calls across all maturities. This reflects continued demand for downside protection and ongoing call-selling strategies aimed at generating yield.

Call options currently dominate 24-hour trading volume for both Bitcoin and Ether, pointing to rising demand for bullish exposure.

Solana Tokenization Growth

Solana’s tokenized asset volume reached a record $5.8 billion in the second quarter, marking a 114% quarter-over-quarter increase and extending its growth streak to six consecutive quarters. Tokenized equities accounted for much of the expansion.

The growth highlights accelerating institutional adoption and demonstrates Solana’s ability to support large-scale transactions, reinforcing its role in connecting traditional finance with blockchain infrastructure.

Although SOL declined more than 11% during the quarter, it outperformed Bitcoin’s 15% decline. Since the start of July, SOL has gained 6%, while Bitcoin has recovered 13%.

Meanwhile, the tokenized real-world asset market excluding stablecoins has expanded beyond $33 billion, nearly tripling from approximately $12 billion a year earlier.