The S&P 500 achieved another record closing high on Friday while bitcoin approached the $80,000 mark earlier Saturday. In Asian trading hours, bitcoin’s largest variant traded at $78,180, marking a 0.8% weekly increase after recovering from a Wednesday low near $75,500, following reports of escalating tensions in Iran. This rebound coincided with news that Tehran had proposed a new ceasefire to Washington via Pakistan, causing WTI crude oil prices to drop nearly 3%, settling around $102 per barrel.
Equities experienced a robust week, with the S&P 500 closing up 0.3% at an all-time high on Friday for its fifth consecutive weekly gain, buoyed by strong earnings from major tech companies. The Nasdaq 100 also advanced by 0.9%, setting yet another record. Apple’s shares rose 3.2% after a favorable revenue forecast, while Oracle saw a 6.5% increase due to its involvement with AI projects for the Pentagon’s classified networks.
On the policy front, significant developments emerged concerning cryptocurrency regulations. The Senate released the Clarity Act compromise text on Friday, concluding months of discussions between crypto firms and bank lobbyists. This agreement, negotiated by Senators Thom Tillis and Angela Alsobrooks, restricts stablecoin issuers from offering yield solely based on holding reserves but retains reward programs linked to user activity. Coinbase promptly expressed support through its Chief Legal Officer Paul Grewal, who noted that the legislation maintains rewards tied to genuine participation on crypto platforms.
The Senate Banking Committee can now begin formal debates and amendments for the bill, paving the way for further progression in the Senate. Once enacted, Treasury and the CFTC will have a year to formulate detailed regulations governing yield products by crypto firms.
Daniel Reis-Faria, CEO of ZeroStack, commented that bitcoin’s range-bound trading reflects broader macroeconomic uncertainty rather than issues specific to cryptocurrency. He highlighted ETF outflows and reduced demand as indicators, suggesting that institutional investors are not exiting but merely refraining from increasing exposure. Should funds re-enter the market, particularly from institutions or via ETFs, bitcoin could see a rapid price increase.
Other major cryptocurrencies were mixed: Ether remained at $2,310, XRP was steady at $1.39, and Solana held firm at $84.57, all showing negligible weekly changes. Dogecoin stood out with a nearly 10% gain on the week to $0.105, accompanied by futures open interest reaching a year-high earlier in the week.
As markets head into next week, the prevailing situation remains unchanged: bitcoin requires a new catalyst to decisively break through the $78,000 barrier. Potential triggers like Federal Reserve clarity, ETF re-acceleration, or reopening of the Hormuz Strait are beyond market control.