Bitcoin has surged despite major adverse factors such as the U.S. Federal Reserve’s interest rate hike and the failure to pass the Clarity Act. Market analysts suggest the virtual asset market may have entered a full-fledged bull run.
According to Investing.com on the 21st, Bitcoin was trading at $86,506.9 as of 8:30 a.m. the same day. Just a week ago, on the 15th, it had recorded $75,620.4. This marks a 14.4% surge within a week. Bitcoin’s rise above $85,000 is the first since January.
Recently, Bitcoin faced simultaneous major adverse and positive events. A key negative factor was the rejection of the Clarity Act—a bill clarifying the regulatory framework and supervisory roles for virtual assets—by the U.S. Senate on the 15th (local time). The virtual asset industry had anticipated increased institutional investment if the bill passed, but it stalled after Democrats raised conflict-of-interest issues involving U.S. President Donald Trump and his family. Additionally, risk asset sentiment contracted following the Fed’s first rate hike in 3 years and 2 months on the 16th, causing sharp declines in Bitcoin, major virtual assets, and related stocks.
However, regulatory easing news from U.S. financial authorities acted as a catalyst for recovery. On the 17th, the Securities and Exchange Commission (SEC) announced a 5-year conditional regulatory exemption for blockchain-based stock tokens. The next day, the Commodity Futures Trading Commission (CFTC) submitted new virtual asset trading regulations to the White House for review. Analysts attribute the rapid price rebound to improved investor sentiment driven by these regulatory developments.
Experts are forecasting a bullish trend for Bitcoin. Matt Hogan, Chief Investment Officer (CIO) of Bitwise, told U.S. CNBC, “I believe the crypto winter has ended, and spring flowers are now blooming. This bull run will be the strongest and longest-lasting in cryptocurrency history.” Alex Kuptsevich, senior analyst at virtual currency analysis firm Fx Pro, noted, “The total market capitalization of virtual assets recently exceeded $2.8 trillion, the highest since late January. Buying pressure has been driving the virtual asset market since the 20th.”
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