The S&P 500 achieved another record high, while Bitcoin made a notable attempt to reach 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 recovering from a Wednesday low of approximately $75,500, which was triggered by reports of escalating military tensions in Iran.
This rebound coincided with reports on Friday that Tehran had proposed a new ceasefire through Pakistan, resulting in a nearly 3% decline in WTI crude to around $102 per barrel. Equities experienced a stronger week, with the S&P 500 closing 0.3% higher on Friday, achieving an all-time high and marking its fifth consecutive weekly gain, largely driven by robust earnings from tech giants. The Nasdaq 100 also advanced, reaching a record high with a 0.9% increase.
Apple saw a 3.2% gain following a better-than-expected revenue forecast, while Oracle surged 6.5% after announcing its collaboration with the Pentagon's classified networks on AI projects. A significant development in the crypto space was the release of the long-negotiated Clarity Act compromise by the Senate, which puts an end to months of discussions between crypto firms and banking lobbyists.
The agreement, negotiated by Senators Thom Tillis and Angela Alsobrooks, prohibits stablecoin issuers from offering yield purely based on holding reserves but preserves reward programs tied to platform activity. This move was promptly supported by Coinbase, with its Chief Legal Officer, Paul Grewal, stating that the language upholds activity-based rewards for real participation on crypto platforms, aligning with the bank lobby's demands. The Senate Banking Committee can now proceed with a markup, paving the way for further legislative progress.
The Treasury and CFTC will have a year to establish detailed rules for crypto firms regarding yield products once the bill becomes law. Daniel Reis-Faria, CEO of ZeroStack, noted that Bitcoin's range-bound trading reflects broader macroeconomic uncertainty rather than crypto-specific weakness, citing ETF outflows and softer demand as indicators. Reis-Faria emphasized that institutional investors are not exiting the market but are currently not increasing their exposure, suggesting that if money flows back into the market, especially through institutional investments or ETFs, Bitcoin could experience a rapid increase.
Other major cryptocurrencies showed mixed results, with Ether, XRP, and Solana remaining relatively flat, while Dogecoin stood out with a nearly 10% weekly increase to $0.105, accompanied by a year-high in futures open interest earlier in the week. Heading into the next week, the setup remains unchanged, with Bitcoin requiring a new catalyst to break decisively above $78,000, and potential sources such as Fed clarity, ETF re-acceleration, or a Hormuz reopening, remaining outside the market's control.