Bitcoin drives CRCL, BMNR and MSTR soaring ahead of Fed decision

Bitcoin broke through US$66,000, and CRCL, BMNR and MSTR rose as high as 8.6%

As investors made arrangements for the Federal Reserve's July meeting, Bitcoin prices exceeded US$66,000, driving CRCL, BMNR and MSTR to rise as high as 8.6% in Tuesday trading.

Summary

·Bitcoin broke through US$66,000, pushing CRCL, BMNR and MSTR higher in Tuesday trading.
· CRCL and BMNR broke through downward resistance, while MSTR regained its position at the critical $100 mark.
·The Federal Reserve's decision in July will determine whether the gains of these three stocks can continue.

According to data, Bitcoin broke through US$66,000 on July 21, the Ethereum trading price exceeded US$1,900, and XRP rebounded above US$1.14. The total market value of all cryptocurrencies rose 2.08% to US$2.26 trillion in 24 hours.

Stocks related to digital assets also moved higher with the market during Tuesday's trading session. According to the daily trading chart provided by the report, Circle Internet Group rose 8.6%, BitMine Immersion Technologies rose 3.61%, and Strategy rose 4.22%.

Another reason for the rising investor interest is that U.S. lawmakers are one step closer to formulating clearer rules for digital assets. As a result, expectations surrounding the CLARITY Act provide support for companies directly affected by cryptocurrency prices, stablecoin activity, and corporate crypto positions.

Strong cryptocurrency drives three stocks higher

Circle Internet Group was the biggest gainer of the three companies, with CRCL closing at $71.08 and opening at $68.94. TradingView data showed that the stock hit an intraday high of $72.68 and reached a low of $68.65, before finally closing up 8.6%.

CRCL also broke through the upper trajectory of the downtrend channel that has suppressed its prices since early June. The daily chart provided by the report shows that the channel's resistance level was previously around $65, which means that if a breakthrough occurs after a step back, this level will be the first line of defense that buyers need to defend.

Kinetic indicators support a rebound, but the flow of funds remains a cause for concern. CRCL's Aroon Up indicator reached 85.71%, while Aroon Down fell to zero, which showed strengthening upward momentum; however, the Chaikin Fund Flow indicator remained negative at-0.25, indicating that buying pressure has not yet led to sustained inflows.

Based on the visible chart structure, the next resistance range lies between $75 and $80. If prices fall back below the boundary of the channel that was breached (about $65), the effectiveness of the breakthrough will be weakened; while the recently formed bottom area near $60 will constitute the next visible support level.

BitMine Immersion Technologies closed at $17.23, up 3.61%, with an intraday trading range of $16.69 to $17.24. Before the Federal Reserve meeting, investors evaluated BitMine's latest purchase of Ethereum and its share repurchase plan, driving the stock price higher.

According to company data cited in the report, BitMine purchased another 7,430 ETH units this week, bringing its total holdings to 5.78 million units. The company has pledged 4.92 million ETH units, accounting for approximately 85% of its Ethereum inventory reserves, while its crypto assets, cash and investments totaled US$11.5 billion.

The same company update showed that BitMine also bought back 5.5 million shares at an average price of $15.62. Its daily chart shows that BMNR broke through the downtrend line that has suppressed stock prices since May, while prices also broke through the supertrend line of $16.53.

According to TradingView data, the relative strength index of BMNR rose to 58.71, while the signal average was 47.17. As the RSI remains below the overbought threshold of 70, the indicator leaves room for further gains towards the $18 resistance (and then the previous consolidation area around $20); if the close falls below $16.53, the reversal pattern will weaken and the next support will be seen at $13.83.

TradingView data showed Strategy shares closed at $101.95 on Tuesday, up 4.22%. MSTR hit an intraday high of $104.60 and fell to $99.95, but before the close, buyers re-entered near the psychologically important $100 mark.

Michael Saylor disclosed that Strategy increased its dollar reserves by $225 million, bringing the company's cash reserves to $3.2 billion. The report also showed that Strategy held 843,775 bitcoins, which made MSTR's share price closely correlated with changes in Bitcoin's market value.

Fed guidance will test new breakthroughs

According to the daily chart provided, MSTR has regained its position on the middle orbit of the Bollinger Band (US$94.79) and is approaching upper orbit (US$105.36). If a breakthrough on the upper track is confirmed, it may open up room for upside around $110; if it is rejected,$100 and the mid-track (about $95) will constitute the primary support level.

Despite Tuesday's rebound, MSTR's average trend index was only 18.77. Indicator readings from TradingView show that the stock has not yet formed a strong trend direction, which means that the breakthrough will become fragile if Bitcoin loses upward momentum or the Federal Reserve signals a tighter policy.

According to the report, the Federal Reserve is scheduled to meet from July 28 to 29, and the market expects policymakers to keep interest rates unchanged. Investors will turn to Chairman Kevin Warsh's remarks for clues about inflation, economic growth and the timing of future policy changes.

Balanced policy signals may help Bitcoin and cryptocurrency-related stocks hold on to Tuesday's gains. More hawkish guidance could trigger profit-taking, putting direct pressure on CRCL's channel breakthrough, BMNR's super-trend reversal, and MSTR's return to above $100.