Crypto Markets Defy Equities Weakness as CLARITY Act Gains Momentum

Crypto markets are pushing higher despite weakness in equities, which have been affected by AI capex fears and escalating conflicts. Bitcoin (BTC) gained strength this week, climbing 4.16%, while Ethereum (ETH) trailed close behind with a 2.98% gain. The total crypto market cap rose to $2.22T, up 2.30% from the previous week.

The CLARITY Act has seen several key developments this week, with investors and traders watching for potential positive catalysts. Senate Republicans released a new version of the bill, covering ethics and blockchain regulatory certainty, while Democrats have expressed opposition to the latest draft due to concerns over ethics and conflict of interest.

Hacks on DeFi bridges continue to raise fears in the space, particularly with increased attack vectors from AI advancements. AFX's derivatives exchange was exploited for $24M in USDC, and Allbridge was targeted for $1.65M on Solana.