Istanbul, August 24 (HNA) – The cryptocurrency market has rebounded following US President Donald Trump’s move on the Clarity Act, with Bitcoin approaching the $80,000 mark and institutional interest on the rise. This rapid rise was driven by supportive messages from US politics, macroeconomic measures and strong inflows into the stock market.
Trump’s call on Congress to enact the Clarity Act bill – known as a comprehensive set of regulations for the cryptocurrency markets – instilled confidence in the market, whilst news that the US Treasury Department would increase its purchases of long-term government bonds reassured the markets and accelerated the upward trend.
Whilst spot Bitcoin ETFs saw net cash inflows of hundreds of millions of dollars, the rapid price rise triggered the liquidation of short positions, fuelling the rally.
Following the leading cryptocurrency’s break above its trading range, and amid growing investor concerns over inflation and the fiscal deficit, Bitcoin and crypto stocks continued their upward trend into the week.
The price of Bitcoin rose by 2.0 per cent to trade just below $80,000 – levels not seen since May – whilst Ether also rose by 2.0 per cent to reach approximately $2,500, trading at its highest level since January.
Just a few days ago, Bitcoin still appeared to be stuck in a market that had been gradually declining for months. Then, its almost entirely unexpected surge towards $80,000 reignited the belief that the emerging momentum alone could drive cryptocurrencies even higher.
According to market analysts, US Treasury Secretary Scott Bessent’s plan to at least double the buyback of long-term Treasury bonds initially pushed down yields and weakened the dollar; as a result of these developments, gold prices also rose.
Analysts, emphasising that this combination has reignited ‘devaluation trading’, noted that mounting fiscal pressures and easing financial conditions have strengthened the appeal of scarce assets outside the state monetary system.
According to analysts, there is more to this movement in the crypto markets than just another wave of enthusiasm amongst crypto investors. In the wake of Trump’s initiative, investors are also closely monitoring potential regulatory developments and the situation in Washington; renewed efforts there to establish clearer rules for digital assets could dispel some of the regulatory uncertainty that has hung over the sector for years.
Consequently, the rise in the price of Bitcoin could create a ripple effect across the sector. Behind this movement lies more than just another wave of enthusiasm amongst crypto investors. Investors are also keeping a close eye on developments in Washington, where renewed efforts to establish clearer rules for digital assets could dispel some of the regulatory uncertainty that has hung over the sector for years.
Analysts, who emphasise that Bitcoin continues to follow a volatile trajectory and may therefore face numerous obstacles during its upward trend, note that following a strong week for both Bitcoin and crypto-related shares, the sector is once again attracting Wall Street’s attention.