Bitcoin stabilized above $77,000 on Monday as investors bet on a more favorable regulatory environment for digital assets in the United States. The cryptocurrency rose 1.3% to $77,091.10 by 02:47 UTC, having earlier surpassed $79,000 following calls from President Donald Trump for a fair version of the Clarity Act.
The proposed legislation aims to establish a clearer regulatory framework for the U.S. crypto sector, but its progress has been delayed for over a year amid disputes over whether cryptocurrencies should be classified as securities or commodities. Additional points of contention include the treatment of yield payments on stablecoins and a clause restricting lawmakers and government officials from trading cryptocurrencies—a provision that gained attention after Trump’s reported profits from the sector during his presidency.
Ether climbed 2.7% to $2,457.34, while Solana, Cardano and BNB each gained more than 2%. XRP advanced 2.4% to $1.4784, and Dogecoin also rose 2.4%. The $TRUMP memecoin, linked to the former president, edged up 0.5%.
Market sentiment was also influenced by U.S. Treasury plans to double purchases of longer-term bonds to lower yields, injecting liquidity into risk assets. The move, part of a broader strategy to manage fiscal pressures, has fueled a so-called "debasement trade"—a shift toward alternative stores of value amid concerns over dollar depreciation. Analysts note that while Bitcoin benefits from this liquidity environment, its volatility makes gold a more favored hedge in the current climate.
Geopolitical risks added caution to trading, with the U.S. preparing to impose new sanctions on Iran. Tehran has warned of consequences in response, contributing to a cautious tone in broader risk markets.
