The S&P 500 achieved a new record high, while Bitcoin made a push towards the $80,000 mark earlier on Saturday. The largest cryptocurrency was trading at $78,180 during Asian hours, representing a 0.8% weekly increase and a recovery from a Wednesday low of approximately $75,500, which was triggered by reports of escalating military tensions in Iran. However, the bounce occurred alongside reports that Tehran had proposed a new ceasefire to Washington through Pakistan, resulting in a nearly 3% decline in WTI crude to around $102 per barrel.
Equities experienced a more successful week, with the S&P 500 closing 0.3% higher on Friday at an all-time high, marking its fifth consecutive weekly gain, driven by strong earnings from tech giants. The Nasdaq 100 advanced 0.9% to reach a new record, with Apple gaining 3.2% after exceeding revenue expectations and Oracle climbing 6.5% following news of its collaboration with the Pentagon's classified networks. A significant development in the crypto space was the release of the long-negotiated Clarity Act compromise text by the Senate, which ended months of negotiations between crypto firms and bank lobbyists. The agreement, negotiated by Senators Thom Tillis and Angela Alsobrooks, prohibits stablecoin issuers from offering yield based solely on holding reserves but preserves activity-based reward programs that crypto firms use as incentives for platform usage.
Coinbase, a key player in the talks, expressed support for the language, with Chief Legal Officer Paul Grewal stating that it "preserves activity-based rewards tied to real participation on crypto platforms and networks, which is what the bank lobby wanted." 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 regarding what crypto firms can and cannot do with yield products. Meanwhile, Daniel Reis-Faria, CEO of ZeroStack, noted that Bitcoin's range-bound trading reflects broader macro uncertainty rather than crypto-specific weakness, citing ETF outflows and softer demand as symptoms. Reis-Faria pointed out that this does not mean institutions are leaving the market, but rather that they are not increasing their exposure at present.
If money starts flowing back in, especially from institutions or through ETFs, Bitcoin can move higher quickly. Other major cryptocurrencies were mixed, with Ether holding at $2,310, XRP at $1.39, and Solana at $84.57, all relatively flat on the week. Dogecoin was the standout, rising nearly 10% on the week to $0.105, with futures open interest reaching a year-high earlier in the week.
The setup heading into next week remains the same as it has been all month, with Bitcoin needing a fresh catalyst to break decisively above $78,000, and the most likely sources, including Fed clarity, ETF re-acceleration, or a Hormuz reopening, remaining outside the market's control.