Crypto market update August 6: Bitcoin nears $65K as ETF inflows rise, Ethereum and Pi Network lead gains

The crypto market traded with mixed momentum on August 6. Bitcoin (BTC) moved closer to the $65,000 mark, while Ethereum (ETH) and Pi Network (PI) outperformed most major cryptocurrencies.

The gains came despite growing uncertainty over the CLARITY Act, which still has not received a Senate vote before the U.S. Congress begins its August recess.

Missed yesterday's market action? Read our Crypto Market Update August 5 to see how ETF inflows and market sentiment shaped the previous trading session.

Bitcoin and Ethereum Rise as ETF Demand Continues

Bitcoin traded around $64,500, gaining nearly 1% during the day. Ethereum also moved higher, climbing above $1,900 after posting one of its strongest daily performances in recent weeks.

One of the biggest reasons behind today's gains is continued demand from institutional investors.

Spot Bitcoin ETFs recorded another day of positive inflows, extending their winning streak to three consecutive trading sessions. More money flowing into Bitcoin ETFs usually signals growing confidence from large investors.

Ethereum ETFs also attracted fresh capital, recording their strongest daily inflows in nearly two weeks. The steady demand has helped support ETH despite uncertainty in the wider crypto market.

At the same time, easing geopolitical tensions between the United States and Iran have improved investor confidence across financial markets, increasing demand for risk assets such as cryptocurrencies.

CLARITY Act Uncertainty Still Weighs on Crypto

While Bitcoin and Ethereum gained, uncertainty around U.S. crypto regulation continues to limit broader market momentum.

Prediction markets now show much lower odds that the CLARITY Act will pass before lawmakers leave Washington for the August recess.

The bill is designed to create clear rules for digital assets by defining the responsibilities of the SEC and the CFTC.

Many investors believe regulatory clarity could encourage more institutional investment into crypto. Until lawmakers decide the bill's future, some traders expect market volatility to remain elevated.

Crypto Market Snapshot (August 6)

Total Crypto Market Cap: $2.2 trillion (+0.3%)

24-Hour Trading Volume: $57.3 billion

Bitcoin (BTC): ~$64,550 (+0.8%)

Ethereum (ETH): ~$1,900 (+1.9%)

Bitcoin Dominance: 58.9%

Ethereum Dominance: 10.4%

Fear & Greed Index: 25 (Extreme Fear)

Altcoin Season Index: 43/100

Derivatives Market Shows Rising Trading Activity

Activity in the derivatives market also increased during the day.

Open interest across crypto futures rose to more than $115 billion, showing that traders continue opening new positions.

Total derivatives trading volume also increased compared to the previous day.

Meanwhile, approximately $257 million worth of positions were liquidated across the market. Bitcoin and Ethereum accounted for the largest share of those liquidations as traders adjusted to the latest price moves.

Bitcoin Price Approaches Key Resistance

Bitcoin has recovered steadily over the past few days after falling near $62,300 earlier this week.

The price has now moved back above important short-term moving averages, suggesting buyers are slowly regaining control.

The next major level to watch is $65,000.

If Bitcoin breaks above this resistance and holds the move, analysts believe it could continue toward the next resistance zone around $67,000.

However, traders remain cautious as regulatory uncertainty and macroeconomic events could still create short-term volatility.

Ethereum Breaks Above $1,900

Ethereum also strengthened after moving above the important $1,900 level.

Market analysts say continued ETF inflows and increased accumulation by large investors have helped improve sentiment around ETH.

On-chain data also shows that large Ethereum wallets have continued adding to their holdings over the past year, reflecting growing long-term confidence.

If Ethereum maintains its momentum, the next important resistance area sits above $2,000.