The Bitcoin price experienced a notable surge early Wednesday, successfully reclaiming the $90,000 mark as traders absorbed new macro signals and the increasing momentum surrounding U.S. crypto regulation. The recent shift came after a notable bounce from weekend lows around $86,000, with the bitcoin price surging to peaks of $90,361 throughout the day, as reported. The market is currently on edge as it anticipates the Federal Reserve’s first rate decision of the year later today, with futures indicating a nearly guaranteed hold on rates this Wednesday. With unemployment sitting at 4.4%, traders are shifting their attention away from inflation and honing in on whether Chair Jerome Powell expresses any worries regarding the softness in the labor market. If Powell emphasizes job market resilience and counters near-term rate cuts, a “neutral” Fed meeting may swiftly shift bearish for crypto.
Gold is on the rise, reaching a new all-time high above $5,300 per ounce, highlighting a resurgence in demand for hard assets as currency uncertainties grow. Bitcoin seemed to ride the wave of favorable macro conditions, shaking off the earlier hesitance that had characterized trading following last weekend’s decline. A late-day bitcoin price rally unfolded yesterday as President Donald Trump, speaking in Iowa, dismissed concerns over the weakening U.S. dollar, stating he was “not concerned” about its decline and asserting the dollar was “doing great.” This price rally emerges at a crucial juncture for U.S. cryptocurrency policy. On Thursday, the Senate Agriculture Committee is set to cast its vote on a pivotal crypto market structure bill aimed at clarifying regulatory jurisdiction over digital asset markets.
The markup is anticipated to feature multiple amendments, with legislators ultimately determining whether to push the bill to the Senate floor, as reported. As Democratic backing for the legislation hangs in the balance, the lack of unrelated amendments that are generally seen as deal-breakers has heightened optimism that the bill may progress. For market participants, advancements in the legislation signify a possible move towards the long-desired regulatory clarity in the United States.
Bitcoin’s price movement illustrates the evolving landscape. After facing challenges for a significant portion of the last 24 hours to regain the $88,000 mark due to ETF outflows, uncertainty from the Federal Reserve, and ongoing bearish technical pressure, buyers managed to reassert their control as the day came to a close. As of the latest update, bitcoin is priced at $90,075, reflecting an increase of approximately 2% in the last 24 hours, accompanied by a daily trading volume nearing $43 billion. The circulating supply of the asset is currently at 19.98 million BTC, with a capped maximum of 21 million.