Despite Bitcoin dipping over 1% to around $117,000, the broader crypto market continued its bullish momentum on July 17, led by strong gains in altcoins.
Ethereum (ETH) soared by 8% to $3,400, while Ripple (XRP) posted an even sharper rise of 10.15%, trading at $3.25. Meme favorites and DeFi tokens joined the rally as well Floki (FLOKI) gained over 10%, Fartcoin (FARTCOIN) surged nearly 14%, and Curve DAO also saw notable gains.
What’s Fueling the Rally?
The main driver appears to be growing optimism around the GENIUS Act, a landmark crypto regulation bill currently making its way through Congress. The House of Representatives is expected to vote on the bill this Thursday, and if passed, it could be signed into law as early as Friday.
So far, House Republicans have advanced the bill, signaling strong political momentum. If passed, this would mark the first major piece of crypto legislation in U.S. history, creating a clear regulatory framework particularly for stablecoin issuers.
Under the GENIUS Act:
- All USD-backed stablecoins would need to be fully collateralized with cash or short-term Treasury bonds
- Issuers must offer regular disclosures and submit to third-party audits
Investors are reacting positively to the clarity the bill could bring, especially after years of regulatory ambiguity in the crypto space.
Broader Sentiment Is Improving Too
Beyond the GENIUS Act, the market is also benefiting from a broader shift in investor sentiment. The Crypto Fear & Greed Index has moved into the greed zone, currently sitting at 67, indicating growing confidence.
Meanwhile, geopolitical concerns are easing. President Donald Trump recently allowed NVIDIA, AMD, and other U.S. chipmakers to resume some sales to China a decision that helped calm trade war fears. Notably, NVIDIA had warned that export restrictions could cost the company over $8 billion per quarter.
There’s also speculation that Trump may hold off on increasing tariffs on Chinese goods currently set to jump to 145% in August in order to pave the way for a potential summit with China’s President Xi Jinping.
But Is a Correction Coming?
While the crypto rally is impressive, some analysts are urging caution. Markets often experience a “buy the rumor, sell the news” effect where prices climb ahead of a big event (like the GENIUS Act vote), then dip once it actually happens.
Additionally, many altcoins have moved significantly above their key moving averages, raising the possibility of a mean reversion a short-term correction back to historical price levels.
So while bulls are in control for now, traders should stay alert. Once the legislative dust settles, some steam may come out of the rally.
