The S&P 500 achieved a new record high, while bitcoin made a notable push towards the $80,000 mark earlier on Saturday. The largest cryptocurrency was trading at $78,180 during Asian hours, marking a 0.8% weekly increase and a recovery from its Wednesday low of $75,500, which was triggered by reports of military escalation in Iran. However, the situation improved with news of a potential ceasefire proposal from Tehran, leading to a decline in crude oil prices.
The equity market experienced a strong week, with the S&P 500 closing 0.3% higher on Friday, marking its fifth consecutive weekly gain, driven by impressive earnings from tech giants. The Nasdaq 100 also reached a new high, with Apple and Oracle making significant gains.
A major development in the crypto space was the release of the Clarity Act compromise text by the Senate, which would prohibit stablecoin issuers from offering yield-based products that rely solely on reserve holdings, while preserving reward programs tied to platform activity. This agreement has been met with support from crypto firms, including Coinbase, and paves the way for the legislation to advance in the Senate.
The Treasury and CFTC will have a year to establish detailed rules for crypto firms after the bill becomes law. According to Daniel Reis-Faria, CEO of ZeroStack, bitcoin's range-bound trading reflects broader macroeconomic uncertainty rather than crypto-specific weakness.
Reis-Faria attributes this to ETF outflows and softer demand, but notes that institutional investment could lead to a rapid increase in bitcoin's value. Other major cryptocurrencies were mixed, with ether, XRP, and solana trading relatively flat, while dogecoin experienced a significant increase of nearly 10% to $0.105, with futures open interest reaching a year-high earlier in the week. As the market heads into the next week, the setup remains unchanged, with bitcoin requiring a fresh catalyst to break decisively above $78,000, and potential sources of this catalyst, including Fed clarity, ETF re-acceleration, or a Hormuz reopening, remaining outside the market's control.