Bitcoin rose on Thursday, continuing its recent recovery as markets weigh proposed US legislation aimed at creating a regulatory framework for cryptocurrencies.
The world's largest cryptocurrency rebounded from a sluggish start to the year after major corporate holder Strategy disclosed a significant purchase this week. However, it remains well below the coveted $100,000 level, and risk appetite for cryptocurrencies remains under pressure.
Bitcoin rose 1.4% to $96,370.1 by 8:05 AM Moscow time, reaching its highest level in two months.
US Senate Shelves Cryptocurrency Bill After Coinbase Objections
The US Senate Banking Committee said on Wednesday it had postponed debate on a proposed cryptocurrency bill just hours after Coinbase Global Inc (NASDAQ:COIN) CEO Brian Armstrong expressed opposition to the measure. Senator Tim Scott announced on social media that the measure, scheduled for debate on Thursday, has been postponed.
In a social media post earlier Wednesday, Armstrong criticized the bill and stated that Coinbase cannot support it in its current form.
Armstrong criticized several aspects of the bill, including the proposed ban on tokenized securities, bans on decentralized finance, less oversight from the CFTC, and "draft amendments that would kill stablecoin rewards."
"This version would be substantially worse than the current status quo. We would rather have no bill at all than have a bad bill," Armstrong said, criticizing the bipartisan measure.
Coinbase was a major donor to pro-cryptocurrency organizations during the 2024 election cycle and is considered a key stakeholder in the bill negotiations. The company is the largest cryptocurrency exchange in the United States. The crypto industry has long promoted the idea of a comprehensive regulatory framework in pursuit of clarity regarding whether crypto tokens can be considered securities or commodities.
Cryptocurrency Prices Today: Altcoins Lagging as Risk Appetite Remains Weak
Broader cryptocurrency prices lagged Bitcoin's rise, remaining under pressure as overall risk appetite remained weak.
Global geopolitical tensions remained high, with markets fearing further US intervention in Venezuela and Iran.
Despite Bitcoin's recovery, the cryptocurrency continued to trade at a discount on US markets, particularly on Coinbase, compared to global averages. This trend, which has been observed since mid-December, indicated that retail demand for cryptocurrency remained weak.
Among altcoins, the world's second-largest cryptocurrency, Ether, fell 0.6% to $3,312.22. XRP fell 2.4%, while BNB lost 0.5%.
Solana remained unchanged, while Cardano lost 4.6%.
Among memecoins, Dogecoin fell 2.7%, while $TRUMP lost 4.1%.