Bitcoin Hits $97K Amid Spot ETF Inflows
This week, Bitcoin experienced a significant surge, reaching over $97,000 as interest in US spot Bitcoin ETFs drove investor activity, marking the highest level in months. However, the momentum didn’t last as the cryptocurrency dipped back toward the $95,000 level due to pivotal regulatory developments in the US.
Regulatory Concerns and Market Response
The US Senate Banking Committee unexpectedly delayed its review of the Clarity Act, a bill aimed at reforming crypto market regulations. Initially lauded as a potential breakthrough for the cryptocurrency industry, the delay added uncertainty, prompting a cautious response from investors. Adding fuel to the fire, Coinbase publicly withdrew support for the bill, citing major flaws that could harm decentralized finance (DeFi) and privacy in the industry.
Industry Divided Over the Clarity Act
The Clarity Act, introduced earlier this week, aims to classify crypto tokens either as securities or commodities, strengthening the authority of the US Securities and Exchange Commission in the process. Despite years of lobbying for clearer regulations, industry leaders such as Coinbase’s CEO now argue that the proposed legislation could have sweeping negative impacts on innovation by restricting tokenized stocks and giving the government unwarranted access to user data.
Current Market Data
As of now, Bitcoin is trading at approximately $95,416, representing a 0.5% drop from its recent peak. Altcoins, including Ethereum (now at $3,300), mirrored Bitcoin’s decline as the market adopted a wait-and-see approach. Ethereum, along with popular tokens such as XRP, SOL, and ADA, also traded lower, reflecting decreased investor confidence following the legislative news.
Bitcoin’s Path Ahead
Despite turbulence, Bitcoin’s earlier weekly rally remains notable. Spot Bitcoin ETFs attracted over $1.7 billion in investments within three days, showing strong institutional interest. As global economic and geopolitical factors, including tensions with Iran, potentially fuel crypto demand, analysts remain split on whether Bitcoin can retest the $100,000 milestone by the end of the week.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research before making financial decisions.
