- The price of Bitcoin traded above $82K heading into Monday amid growing anticipation for the Clarity Act markup.
- BTC’s role as a geopolitical hedge amid unresolved issues between the US and Iran, which have driven volatility in oil prices, also reinforced the trend.
Bitcoin (BTC) briefly tapped the $82K range near Monday midnight (UTC), sparking hopes that the crypto winter may be over. Its move coincided with improving macro conditions and regulatory environment for crypto assets, as well as recovering market sentiment.
Bitcoin Price Builds Momentum
As of writing, Bitcoin’s 24-hour trading volume has surpassed $31 billion, indicating robust activity within its ecosystem. It followed the liquidation of over $410 million in leveraged crypto positions within the same period, where shorts accounted for more than $246 million of the float. The event reinforced BTC’s control over the market, as its dominance exceeded 60%.
Sentiment also significantly rebounded from February’s all-time lows at 5 within the “Extreme Fear” zone to a “Neutral” rating at 48 at the start of the current work week. If the rising trend holds, it would further signal a complete transition in investor behavior toward the premier crypto asset.
The Clarity Act Markup
One of the key drivers of Bitcoin is the public’s anticipation of the Clarity Act’s markup on the Senate floor on May 14. The financial sector expects the legislation to bring the much-needed clarity over the matters that were either vague or weren’t addressed in the GENIUS Act.
In line with the compromise among representatives from the banking and crypto sectors, the Senate Banking Committee’s language in the bill prevents stablecoin yields on idle holdings that are economically or functionally equivalent to interest payments on bank deposits. However, it allows other forms of rewards, including cashback, rebates, loyalty points, and activity-driven bonuses.
With its markup, senators will be left to debate other pressing subjects in the legislation, including ethics, consumer protection, illicit finance, and the Commodity Futures Trading Commission’s (CFTC) oversight provisions. There’s a slight chance the body may even consider introducing measures that pave the way for a new taxation regime for crypto.
Iran and US Tension
The US-Iran tension drags on as the regime in Tehran failed to please Washington in its counter-proposal. US President Donald Trump even referred to the terms as “totally unacceptable.”
West Texas Intermediate (WTI) and Brent crude oil both jumped by over $4 in the aftermath of Trump’s statement. Nonetheless, the price of Bitcoin remained unfazed as it had already adjusted to a “new normal.” It has already priced in the volatility of the Strait of Hormuz and has begun functioning as a geopolitical hedge, in line with its status as “digital gold,” after the knee-jerk reaction by investors at the start of the US-Iran war.
