Bitcoin hits new highs as investors bet big on US crypto rules

A Record $860M Pour into Digital Assets

Last week, digital money investment funds raked in nearly $860 million—their largest weekly gain since April. The majority of this influx flowed into Bitcoin, signaling renewed optimism in the market. This surge comes after weeks of rising confidence, fueled in part by the CLARITY Act, a new U.S. bill working its way through Congress. Investors have long awaited clearer regulations for crypto, and this legislation could finally bring that stability.

Bitcoin Breaches $80K—Then Holds Steady

Bitcoin prices briefly crossed $80,000 before stabilizing around $81,000 over the weekend. While Bitcoin dominated inflows with $706 million, smaller cryptocurrencies like Ethereum, Solana, and XRP also attracted fresh capital. Even bets against Bitcoin lost steam, with $14 million withdrawn from short-Bitcoin products—suggesting investors are shifting from defensive to bullish strategies.

Skepticism Lingers: Rally or Rebound?

Not all analysts are convinced the momentum will last. Some argue the inflows are merely a temporary rebound, with investors scooping up discounted coins after last year’s steep decline. Bitcoin remains down nearly 50% from its 2025 peak, leaving room for doubt. Others suggest the cash may be flowing from overheated stock markets or traders attempting to time the next major move.

Banks Push Back Against the CLARITY Act

A coalition of major trade associations fired off a letter to senators last Friday, raising concerns that parts of the CLARITY Act could allow crypto firms to offer interest-like rewards on stablecoins. While one senator called the feedback "respectful disagreement," the committee appears set to proceed. If the bill fails, market confidence could take a serious hit.

External Risks Loom Large

The crypto market faces threats from geopolitical tensions—rising oil prices due to conflicts like the Iran war could stoke inflation and higher borrowing costs, tightening the noose on high-risk assets like crypto. Closer to home, next week’s inflation report could determine whether the Federal Reserve cuts interest rates. If inflation remains stubborn, crypto’s recent gains might evaporate as quickly as they arrived.

The Bottom Line

The market’s upward swing reflects a mix of regulatory hope, renewed investor appetite, and cautious optimism. But with lingering doubts, regulatory hurdles, and macroeconomic pressures, the road ahead remains uncertain.