The world’s largest cryptocurrency rose 0.2% to $80,833.9. Over the weekend, it was climbing to $82,000, but by Monday it had lost most of those gains, investing.com wrote.
Market sentiment was also tempered by investor caution ahead of the release of key U.S. consumer price index (inflation) data this week, and in anticipation of high-level talks between the U.S. and China.
Tensions between the US and Iran escalate amid stalled peace talks
Tensions between the US and Iran escalated over the weekend – especially after President Donald Trump broadly rejected Tehran’s response to a 14-point peace proposal.
Trump called Tehran’s response “totally unacceptable.” Iran rejected U.S. calls to dismantle its nuclear infrastructure and demanded only a brief suspension of uranium enrichment.
Iran outlined a plan to end the war and gradually restore commercial shipping through the Strait of Hormuz. Tehran also demanded that the U.S. lift the country’s naval blockade before negotiations on a nuclear deal can begin.
The weekend’s events indicate that de-escalation of the conflict with Iran is unlikely anytime soon. Separately, Israeli Prime Minister Benjamin Netanyahu said the war is not over and allowed the possibility of new military action against Iran.
The U.S. Senate is preparing to consider the Clarity Act
US senators are preparing to meet to consider the long-delayed Clarity Act to establish a regulatory framework for cryptocurrencies.
The Senate Banking Committee has scheduled a key hearing to finalize the bill for 2:05 p.m., with the goal of moving the document toward passage.
Lawmakers are reportedly close to a compromise on the long-stalled issue of the profitability of stablecoins: the law would ban passive income in the style of bank deposits, but allow rewards associated with active transactions and staking – accommodating the interests of lobbyists from both the crypto industry and the banking sector.
If approved by the committee, the bill will be voted on by the full Senate in early June. The Clarity Act aims to create a broad regulatory framework for cryptocurrencies, giving the industry greater legitimacy in US markets.
Crypto market today: altcoins hold up amid uncertainty around Iran and regulation
On Monday, the cryptocurrency market as a whole showed growth, but the uncertainty surrounding the Iran conflict and the Clarity Act prevented a more significant rise.
Ether, the world’s second-largest cryptocurrency, rose 0.4% to $2,337.56, while XRP added 2.8% to $1.4580.
BNB, Solana and Cardano rose between 0.7% and 3.6%.
Among memcoins, Dogecoin rose 1.3%, while $TRUMP fell 0.3%.
