Bitcoin surged on Friday after US lawmakers moved forward with key cryptocurrency regulation legislation.
However, caution regarding US-China negotiations and the war with Iran limited gains.
Bitcoin rose 0.6% to $80,351.50 as of 8:38 AM.
The world's largest cryptocurrency showed strength overnight, recovering above the $80,000 support level as US lawmakers advanced the Clarity Act.
However, the cryptocurrency's gains slowed amid growing caution regarding US-China trade talks and US President Donald Trump's harsh rhetoric toward Iran.
Senate Banking Committee Approves Clarity Act
On Thursday, the Senate Banking Committee voted 15-9 to advance the Clarity Act, paving the way for a possible vote by the full Senate.
The bill aims to create a comprehensive regulatory framework for the US cryptocurrency industry—a move long sought by industry advocates.
However, the bill is expected to face significant opposition, particularly from the banking lobby, which has repeatedly called for stricter restrictions on stablecoin yields.
A number of labor unions and law enforcement agencies have also raised concerns that the bill could harm consumers and financial institutions.
The Clarity Act must now first be considered by the Senate Agriculture Committee before a vote by the full House is possible. Furthermore, the bill will require the support of at least 60 senators.
Uncertainty over China and Iran limits crypto market growth
Cryptocurrencies came under pressure as risk aversion intensified in broader markets on Friday amid uncertainty over the outcome of the ongoing US-China summit. US President Donald Trump's tough comments regarding war with Iran also spooked markets.
Optimism about the US-China summit has waned after a US trade official stated that semiconductor export controls were not discussed during recent talks between Trump and Chinese President Xi Jinping.
Trump and Xi concluded their talks on Friday and indicated some progress in bilateral relations, but did not specify what agreements were reached during Trump's state visit to China.
In an interview with Fox News, Trump said he was losing patience with Iran and called on the country to accept a peace agreement or face even greater military action. His comments triggered a sharp rise in oil prices.
Concerns about the inflationary impact of a war with Iran remain a focus after a series of higher-than-expected US inflation data released this week.
Crypto Market Prices Today: Altcoins Sideways Amid Weak Risk Appetite
On Friday, the broader crypto market moved in a narrow range, posting subdued weekly performance amid fluctuating risk appetite.
Ether, the world's second-largest cryptocurrency, fell 0.9% to $2,249.12, while XRP rose 2%.
Solana, BNB, and Cardano each changed less than 1%.
Among memecoins, Dogecoin fell 0.8%, and $TRUMP fell 1.1%.