A resumption of capital inflows into spot exchange-traded funds has helped Bitcoin rebound sharply from its annual lows over the past few weeks, which, in turn, has bolstered the broader cryptocurrency market, according to investing.com.
The world’s largest cryptocurrency fell 1.3% to $65,920.6 as of 4:52 p.m. Moscow time.
The U.S. Senate is divided over the details of the CRYPTO Act, CoinDesk reports
Democratic senators expressed concern over key details of the bill regarding the structure of the crypto market, specifically a provision aimed at prohibiting government officials from holding large cryptocurrency assets, CoinDesk reported on Tuesday.
Enforcement became the main sticking point, the report states. Democrats wanted state attorneys general to have the authority to apply these ethical rules to federal officials, while the White House and the bill’s Republican sponsors wanted that authority to rest with the U.S. attorney general, sources said.
The ethics provision, which would apply to the president, vice president, and members of Congress, became the main obstacle to the passage of the Digital Asset Market Clarity Act, CoinDesk reported. Resolving this dispute was expected to clear the way for the rest of the bill, although other issues remained unresolved, including how developers would be treated under its anti-money-laundering provisions.
Lawmakers were rushing to finalize the bill before the Senate’s summer recess deadline on August 7.
Tensions between the U.S. and Iran are dampening risk appetite
Bitcoin’s recent rally was halted by ongoing tensions between the U.S. and Iran, as the two countries exchanged retaliatory strikes for the 11th consecutive day.
The conflict showed no signs of abating, with Washington threatening to bomb Iran’s nuclear facilities, while Tehran warned that such a move would provoke a broader escalation of the war.
Oil prices rose due to the conflict, particularly amid new disruptions to shipping after the Iran-backed Houthi group in Yemen imposed a naval blockade in the Red Sea.
The rise in oil prices has fueled concerns about persistent energy inflation, which, in turn, could prompt the Federal Reserve to raise interest rates later this year. Such a scenario weighs heavily on speculative assets, such as cryptocurrencies.
Cryptocurrency Prices Today: Altcoins Stalled After Recent Recovery
The broader cryptocurrency market fell in the wake of Bitcoin, as the sector’s rally ran out of steam this week.
Ether, the world’s second-largest cryptocurrency, fell 0.1% to $1,937.05, while XRP rose 0.2% to $1.1427.
Solana and Cardano each fell by less than 1%, while BNB dropped 1%.
Among meme coins, Dogecoin lost 1%, while $TRUMP fell 0.7%.
