Bitcoin moved slightly on Thursday, holding steady below its recent highs, as markets awaited further key regulatory developments in the United States.
However, continued caution regarding the US-Iran conflict and growing expectations of interest rate hikes have kept the general appetite for cryptocurrencies on the defensive, especially after the positive August.
Bitcoin rose 0.2% to $77,759.40 by 9:01 AM. It had climbed to $82,000.00 in late August before giving back some of its gains.
Recent purchases by major cryptocurrency holder Strategy Inc (NASDAQ:MSTR), along with hopes for further U.S. regulation, have helped Bitcoin retain a significant portion of its gains.
However, growing concern about rising interest rates in developed countries, particularly the United States and Japan, dampened overall optimism.
SEC Chairman Atkins expects the Clarity Act to be passed soon.
U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins stated earlier this week that he expects the Senate to hold a key procedural vote on the Clarity Act on September 15.
Atkins explained that the law, which aims to establish a regulatory framework for cryptocurrencies in the United States, is likely to reach President Donald Trump's desk this month.
Atkins added that the SEC is developing its own regulatory framework, known as the Crypto Asset Regulation Proposal, which could work alongside long-delayed legislation, stressing that the agency is able to move forward with its framework even if the Clarity Act is not passed by Congress.
The proposal to regulate crypto assets is our most historic step yet to establish America as the cryptocurrency capital of the world, and it is consistent with our belief that Congress should send the CLARITY Act to the president's desk, Atkins said in an interview with Fox Business.
The cryptocurrency markets are closely watching the Clarity Act as the next major step toward regulatory credibility. However, the law has been long delayed due to ongoing disagreements over its handling of stablecoin payouts and its wording regarding restrictions on policymakers trading in cryptocurrency markets.
Cryptocurrency prices today: Altcoins move quietly amid Iran tensions and interest rate concerns
Prices for the broader cryptocurrency market moved in a narrow range on Thursday, as caution over the US-Iran conflict and rising interest rates kept appetite for speculative assets on the back foot.
Iran launched fresh attacks on US bases in Kuwait late Wednesday night, as reports indicated that Trump was considering easing the ongoing conflict with Tehran.
On the interest rate front, markets largely maintained their bets that the Federal Reserve will raise rates in September, following hawkish comments from its chairman, Kevin Warsh, last week. Bets on a Bank of Japan rate hike are also gaining momentum after Governor Kazuo Ueda stated that the central bank will discuss raising rates at its September meeting.
Ether, the world's second-largest cryptocurrency, fell 0.7% to $2,404.84, while Ripple (XRP) rose 1.6%.
Cardano led the gainers with a 4% increase, while Solana added 0.8%. BNB/USD rose by 1.2%.
In the meme currency market, Dogecoin rose by 1.4%, and $TRUMPo/USD fell by 1%.
