Crypto Boom! Bitcoin Skyrockets to $81k as New U.S. Crypto Laws Pass – XRP & DOGE Rally 5%

<a href="https://jpyeur.com/xrp-usd/">XRP</a>, <a href="https://jpyeur.com/doge-usd/">DOGE</a> surge 5%, <a href="https://jpyxx.com/btc-usd/">bitcoin</a> above $81,000 as CLARITY Act clears Senate banking panelMarkets

What to know:

Bitcoin climbed back above $81,000 and major cryptocurrencies advanced despite broader macroeconomic selling pressure.
The U.S. Senate Banking Committee approved the bipartisan Clarity Act, a key step toward comprehensive crypto market structure legislation that now heads toward a merger with a similar Agriculture Committee bill.
XRP led gains among major tokens as investors bet that clearer U.S. rules, including the Clarity Act’s separation of payment stablecoins from investment assets, will ease regulatory overhangs on its use case.

As a researcher following the crypto market, I observed an interesting development on Friday. Despite broader market selling pressure, Bitcoin managed to bounce back above $81,000. This positive movement seemed to be fueled by news from Thursday evening – the U.S. Senate Banking Committee passed the Clarity Act with a strong bipartisan vote of 15 to 9. It suggests growing regulatory clarity could be supporting investor confidence.

Bitcoin’s price rose to $81,055 during Asian trading, increasing by 2.3% in the last 24 hours and 1.9% over the past week, according to CoinDesk. This brings the price back to where it was before a drop on Wednesday following the release of producer price index data.

I’m seeing some positive movement in the altcoin market today, with XRP leading the way. It jumped 4.5% to reach $1.49, and its weekly gains are now at 7.6%, making it the best performer over the last seven days. Dogecoin also had a good day, increasing by 3% to $0.1159 – it’s up almost 9% for the week. We also saw gains from BNB, up 2% to $681, and Solana, which rose 2% to $91.

The recent vote on the Clarity Act marked a significant step forward for bipartisan cooperation on crypto regulations, something that hadn’t happened in months. Senator Tim Scott, who leads the Senate Banking Committee, was able to gain enough support by agreeing to consider changes to the bill that he’d previously dismissed. This secured two crucial votes from Democrats and resulted in a 15-9 approval after a period of heated debate.

Senator Scott described the process leading up to the vote as both highly informative and difficult, according to CoinDesk. Senator Elizabeth Warren, the committee’s leading Democrat, voiced her opposition to a change in procedure that allowed for more amendments, stating she didn’t agree with the outcome others favored.

The bill will now be combined with a similar one that the Senate Agriculture Committee already approved along party lines. The combined bill will then go to a vote by the full Senate, and after that, to the House of Representatives. There are still important issues to be worked out, such as concerns from law enforcement and an ethics rule that some Democrats say they need to be satisfied with before they’ll support the overall bill.

XRP’s outperformance reflects the regulatory tailwind landing directly on its addressable case.

Since the SEC sued Ripple Labs, this token has been particularly vulnerable to legal issues in the U.S. Now, with potential new laws clarifying how the market works, one major factor holding back its price has been removed.

According to Renna Ba, who leads ecosystem development at the Layer-2 network Morph, the Clarity Act provides the legal clarity the global payments industry has been waiting for, allowing businesses to confidently build and innovate with payment stablecoins. The Act’s distinction between payment and investment stablecoins is key to this newfound confidence.

According to CK Zheng, co-founder and CIO at ZX Squared Capital, recent positive developments in regulation suggest that bitcoin likely hit its lowest price point for this market cycle in the first quarter of the year.

According to Zheng, the recent drop in value – around 50% from its highest point – isn’t as severe as the 78% decline seen in 2022, hinting that Bitcoin is becoming a more stable asset. He also highlighted the launch of Strategy’s STRC preferred stock, which has attracted $8.5 billion from institutional investors with an 11.5% dividend.

The crypto strength came against a hostile macro tape, however.

Former President Trump stated the U.S. doesn’t need to reopen the Strait of Hormuz, which caused oil prices to rise and increased worries that higher energy costs could worsen inflation. Stock markets in Asia Pacific fell by 1.1%, and U.S. stock futures dropped 0.2%. Meanwhile, the yield on 10-year Treasury bonds increased slightly, rising four basis points to 4.52%.

Japanese government bond yields increased, rising as much as 0.07% after producer prices in Japan showed their largest annual increase since 2023. Meanwhile, the U.S. dollar continued to strengthen for the fifth consecutive day, as investors sought its safety.

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