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Ahmed Barakat
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Bitcoin and Ethereum price climbed after cooler-than-expected U.S. inflation data improved market sentiment. Just hours after, a Japan Bitcoin ETF bill cleared a major committee in the country’s Upper House, raising expectations that spot Bitcoin exchange traded funds could eventually reach Japanese investors. The combination of easing inflation and friendlier regulation gave crypto traders another reason to stay bullish.
Japan’s proposal would classify cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act while lowering crypto taxes to a flat 20%. If passed into law, the framework could allow spot Bitcoin ETFs to launch on the Tokyo Stock Exchange by 2027.
Elsewhere, South Korea advanced plans recognizing virtual assets within national asset rules, while policymakers in India, Europe, and the United States continued debating crypto regulation.
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Japan Bitcoin ETF Sparks Fresh Price Optimism
The Japan Bitcoin ETF proposal has quickly become the day’s biggest story. After years of cautious regulation, lawmakers are now considering a framework that brings digital assets closer to traditional financial markets. Lower taxes and the prospect of regulated investment products could attract both institutional and retail capital once the legislation clears the remaining stages.
Outside Japan, governments are moving at different speeds. India’s Finance Ministry is pushing regulators to strengthen oversight without appearing to endorse cryptocurrencies.
Meanwhile, a joint U.S.-U.K. task force called for greater stablecoin innovation, and banks continue to discuss amendments to the CLARITY Act before lawmakers meet later this week. Europe is also pressing ahead with its Digital Euro pilot.
Markets welcomed the shifting backdrop as Bitcoin price briefly touched above $65,000 before easing back toward the mid $64,000 range. Even so, the move marked a clear breakout from nearly two weeks of muted trading. Softer inflation figures encouraged investors to rotate back into risk assets after fears of additional Federal Reserve tightening faded.
Institutional demand also improved. U.S. spot Bitcoin ETFs recorded $181 million in net inflows after heavy outflows, with BlackRock accounting for the largest share. On-chain data also points to continued accumulation by large holders, suggesting long-term investors remain confident despite recent volatility. Together, stronger ETF demand and the Japan Bitcoin ETF narrative helped keep the Bitcoin price supported.
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Ethereum Price Outpaces BTC as ETF Flows Improve
While Bitcoin grabbed the headlines, Ethereum quietly outperformed Bitcoin price. Ethereum recovered faster than Bitcoin and strengthened against BTC, signaling improving momentum after several weeks of weakness. Traders pointed to a healthier ETH/BTC ratio as evidence that buyers are becoming more confident.
Fresh institutional flows reinforced that view. U.S. spot Ethereum ETFs posted about $58 million in net inflows, reversing the mixed trend seen earlier this month. Morgan Stanley also updated filings tied to proposed Ethereum and Solana ETFs, naming Coinbase as custodian and staking provider. Those developments added to growing confidence around regulated crypto investment products.
The Ethereum price continued pushing toward the $1,900 level after reclaiming important technical support. Analysts say maintaining momentum above recent breakout levels could open the door to another test of psychological resistance near $2,000. At the same time, steady ETF demand remains an important tailwind.
Looking ahead, traders will closely watch incoming U.S. economic data alongside political developments in Japan and Washington. The Japan Bitcoin ETF proposal still faces additional legislative steps, yet it already marks one of the strongest pro-crypto signals from a major economy this year. If institutional inflows continue and macro conditions remain favorable, both Bitcoin and Ethereum price could have room to extend their gains.
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