Bitcoin Falls 3% but Holds Above $117,000
Dubbed “Crypto Week,” the agenda is loaded with pro-crypto proposals that the industry has long awaited to break through regulations.
Quick overview
- Cryptocurrencies are experiencing profit-taking, with Bitcoin down 3% and Solana leading losses at 4.3%.
- The recent Bitcoin rally was fueled by institutional inflows and optimism about the long-term outlook for digital assets.
- U.S. Congress is debating three significant crypto-related bills aimed at creating a supportive regulatory framework for the industry.
- These legislative proposals could mark a turning point for cryptocurrencies, positioning them as a legitimate asset class in Washington.
After a strong start to “Crypto Week,” cryptocurrencies are facing a wave of expected profit-taking, with some tokens falling as much as 4.3%—led by Solana.
Bitcoin (BTC) is down 3% and trading around $117,000, retreating from a new all-time high of over $122,000 reached on Monday, according to Binance. The correction comes as investors await key political wins for the crypto industry this week.
Altcoins are also in the red, with Solana leading losses at -4.3%, followed by Ripple (XRP), down 3.7%.
Crypto Legislation in Focus as U.S. Congress Opens Debates
The latest rally in Bitcoin was driven by steady institutional inflows and growing confidence in the long-term outlook for digital assets. Some analysts still expect BTC to reach $125,000 within the next couple of months. However, they caution that escalating trade tensions under President Donald Trump—especially with the European Union, Mexico, and other key partners—could trigger short-term volatility, even if major players have already priced in such risks.
This week, all eyes are on Capitol Hill as the U.S. Congress begins debate on three critical pieces of crypto-related legislation. Backed by President Trump, these initiatives aim to create a more transparent and supportive regulatory framework for digital assets.
Three Bills That Could Reshape Crypto Regulation
The legislative atmosphere in Washington is seen as optimistic for crypto. Dubbed “Crypto Week,” the agenda is loaded with pro-crypto proposals that the industry has long awaited to break through regulatory uncertainty.
- The Clarity Act: Seeks to transfer regulatory oversight of cryptocurrencies from the SEC to the CFTC and gradually phase out the Howey Test. Proponents say it will foster innovation in mature blockchain ecosystems. Critics warn it could serve as a loophole for noncompliant tokens.
- The Genius Act: Focuses on stricter oversight for stablecoins. It would require full backing with liquid reserves, set standards for issuers, and enforce compliance with the Bank Secrecy Act.
- The Anti-CBDC Surveillance State Act: Aims to block the Federal Reserve from developing a digital dollar, citing privacy and government overreach concerns. The proposal is proving divisive both in Congress and among the public.
Crypto Takes Center Stage
Together, these initiatives signal a turning point: cryptocurrencies are back in the spotlight in Washington—not as a threat, but as a legitimate asset class worthy of institutional-level regulation. Whether this momentum results in actual legislation or stalls in political gridlock will depend on Congress’s ability to navigate procedural hurdles.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
