Bitcoin Holds Its Ground at About $119,000
After a brief tumble, Bitcoin steadied around the $119,000 mark on Wednesday, inching back from the record highs of earlier this week.
Why the Market Faltered
- Legislative hiccup: The U.S. House just blocked a debate on three key bills that would set a regulatory framework for digital assets.
- Inflation alarm: Fresh consumer price data came in hotter than expected.
- Trump’s tariff talk: The former president reopened the debate on trade tariffs, nudging investors toward caution.
These factors sparked a wave of profit‑taking and a shift into “wait‑and‑see” mode across crypto‑asset markets.
Quick Lift on Tuesday
On Tuesday, sentiment perked up when Trump announced he’d snagged support from a key group of Republican lawmakers. This could open the door to a vote on the GENIUS Act, which focuses on stablecoin regulation, along with two related bills that would oversee digital assets and ban a central bank digital currency. If passed, it would be the biggest regulatory stride for crypto in the U.S. to date, creating more stability for institutional players.
Institutional Money is Back In
That optimism translated to tangible flows: Bitcoin ETFs saw big cash inflows, signaling that serious players are ready to reinvest.
What’s Next?
Whether a lasting rally materializes hinges on the Fed’s move to tame stubborn inflation. But clear, credible regulation could set the stage for a full-blown institutional revival of crypto assets.
