Bitcoin surged on Monday, driven by increasing optimism about the upcoming “Crypto Week” in Washington and the renewed support from Tesla CEO Elon Musk. Meanwhile, broader investor sentiment remained cautious as markets waited for further clarity on President Trump’s evolving tariff strategy.

As of 01:55 ET (05:55 GMT), Bitcoin (BTC) rose 1% to $109,056.6, building on its modest gains from last week while remaining in a narrow trading range.

Policy Encouragement: Focus on Crypto Week

Starting on July 14, U.S. lawmakers are set to introduce and discuss at least three key bills aimed at creating a regulatory framework for digital assets. The proposed bills include:

• CLARITY Act – aimed at defining legal frameworks for crypto assets

• GENIUS Act – designed to foster innovation in blockchain technologies and crypto infrastructure

• Anti-CBDC Surveillance State Act – intended to restrict centralized digital currency systems

This legislative effort injected positive momentum into the crypto market, providing renewed hope for clear regulations, especially regarding stablecoins and decentralized financial systems.

Elon Musk’s Political Support for Bitcoin

Adding to the optimistic atmosphere, Elon Musk confirmed that his newly formed political party, the America Party, will support cryptocurrencies.

“Fiat currencies are failing, so yes,” Musk stated on X, replying to a question about whether his party would back Bitcoin.

Musk’s endorsement sparked renewed enthusiasm among retail investors, particularly younger, crypto-savvy voters. His companies, including Tesla and SpaceX, maintain substantial Bitcoin holdings, solidifying his position as a pivotal figure in the digital asset domain.

Market Caution Persists Amid Tariff Uncertainty

Despite the positive headlines for crypto, risk appetite remained muted across broader markets. President Trump announced on Sunday that tariff notification letters will start circulating to global trading partners beginning Monday at 12:00 p.m. ET, with new duties set to take effect on August 1.

The deadline had initially been scheduled for July 9, but the postponement allows nations additional time to finalize trade agreements. However, the lack of specific details regarding the tariffs’ scale and scope continues to affect market sentiment, particularly concerning risk assets like cryptocurrencies.

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Outlook: Is a Breakout Imminent?

With Crypto Week set to capture attention and regulatory clarity on the horizon, Bitcoin could potentially break its current trading range, provided that macroeconomic headwinds from tariffs remain manageable.

Traders are currently positioned with caution, but legislative clarity and significant endorsements like Musk’s may act as a catalyst for stronger price movements in the coming weeks.