Key Highlights
- The price of bitcoin rose 3.5% to $96,755 over the last day.
- A broad rally across the crypto market has added about $161 billion in value between Saturday and Wednesday.
- Recent economic reports have fueled hopes for lower interest rates later this year.
- The Senate is moving closer to advancing pro-crypto legislation, particularly the Clarity Act.
Bitcoin Reaches Two-Month High Amid Crypto Market Rally
Bitcoin has surged to a two-month high, leading a broader rally across the cryptocurrency market. The leading digital asset saw its price rise 3.5% over the past day to around $96,755, marking its highest point since November when it last reached above $100,000.
Market Performance
The rally extended beyond just Bitcoin; other notable cryptocurrencies also witnessed significant gains. Ethereum increased by 4.6%, XRP gained 1.6%, Solana rose 2.2%, and Dogecoin appreciated by 3.1%. The aggregate market value of the global crypto market has risen from $3.17 trillion to $3.3 trillion, adding about $161 billion in just five days.
Economic Factors Driving the Rally
The crypto market’s momentum seems to be bolstered by positive economic indicators. A mixed jobs report and lighter-than-expected inflation data have sustained hopes for lower interest rates from the Federal Reserve in the near future. Historically, Bitcoin tends to rise during periods of lower interest rates as seen during the pandemic when it surged from $5,000 in March 2020 to approximately $69,000 by November.
Pro-Crypto Legislation Gains Momentum
Meanwhile, lawmakers are advancing pro-crypto legislation such as the Clarity Act. The Senate Banking Committee has announced plans to discuss markups to this legislation this week. This move is reminiscent of last year when House Republicans and President Donald Trump pushed similar legislation during what they called “crypto week,” leading Bitcoin to eclipse $120,000 within a two-month stretch.
The Clarity Act aims to define which digital assets are regulated by the Securities and Exchange Commission or the Commodity Futures Trading Commission. As the crypto market continues its rally, experts suggest that regulatory clarity could further boost investor confidence and drive market growth.
