The S&P 500 achieved another record high, while Bitcoin briefly approached the $80,000 mark earlier on Saturday. As of Asian trading hours on Saturday, the largest cryptocurrency traded at $78,180, marking a 0.8% weekly increase and a recovery from a Wednesday low of approximately $75,500, which was triggered by reports of increased military activity in Iran.
The subsequent rebound coincided with Friday's reports of a new ceasefire proposal submitted by Tehran to Washington via Pakistan, resulting in a nearly 3% decline in WTI crude to around $102 per barrel. The equities market experienced a more successful week, with the S&P 500 closing 0.3% higher on Friday to reach an all-time high, marking its fifth consecutive weekly gain driven by strong earnings from tech giants.
The Nasdaq 100 advanced 0.9% to set a new record, with Apple gaining 3.2% after providing a better-than-expected revenue outlook and Oracle climbing 6.5% following the announcement of its collaboration with the Pentagon's classified networks on AI projects. A significant development in the cryptocurrency space was the policy agreement reached by the Senate. The compromise text of the long-negotiated Clarity Act was released on Friday, concluding months of negotiations between cryptocurrency firms and banking lobbyists. The agreement, facilitated by Senators Thom Tillis and Angela Alsobrooks, prohibits stablecoin issuers from offering yield solely based on holding reserves but allows activity-based reward programs that cryptocurrency firms use as incentives for platform usage.
Coinbase, a central participant in the negotiations, expressed immediate support, with Chief Legal Officer Paul Grewal stating that the language 'preserves activity-based rewards tied to real participation on cryptocurrency platforms and networks, which is what the bank lobby sought.' The markup, a Senate Banking Committee hearing where the bill will be formally debated and amended, can now proceed, paving the way for the legislation to advance further in the Senate. The Treasury and the CFTC will have a year after the bill becomes law to establish detailed rules governing what cryptocurrency firms can and cannot do with yield products. Meanwhile, Daniel Reis-Faria, CEO of ZeroStack, noted that Bitcoin's range-bound trading reflects broader macroeconomic uncertainty rather than cryptocurrency-specific weakness.
Reis-Faria attributed this to ETF outflows and softer demand, stating, 'It doesn't mean institutions are leaving the market; it simply means they're not increasing their exposure at present. If money starts flowing back in, especially from institutions or through ETFs, Bitcoin can move higher relatively quickly.' Other major cryptocurrencies were mixed, with Ether holding at $2,310, XRP at $1.39, and Solana at $84.57, all relatively flat for the week. Dogecoin stood out, gaining nearly 10% for the week to $0.105, with futures open interest reaching a year-high earlier in the week.
The setup heading into the next week remains unchanged from the past month, with Bitcoin requiring a new catalyst to break decisively above $78,000. The most likely sources of such a catalyst, including Fed clarity, ETF re-acceleration, or a Hormuz reopening, are currently outside the market's control.