Bitcoin Whipsawed by Washington Regulatory Developments
Regulatory developments in Washington sent shockwaves through the crypto market last week. Bitcoin's price broke above $66,000 after Treasury Secretary Bessent described the Clarity Act as being at the 'one-yard line', with ether and XRP rallying along with the broader market.
However, the momentum was short-lived as a group of key Senate Democrats expressed concerns over the bill's ethics provisions, causing the implied odds of passage to drop from 46% to 38%. As a result, Bitcoin's price retraced back towards $65,500.
The Clarity Act is seen as more significant for assets other than Bitcoin, which already has regulatory clarity. The market was trading on the headline risk, with investors responding to the news of progress and setbacks in the bill's passage.