Bitcoin Holds Above $77,000 on US Regulatory Hopes and Favorable Macro Conditions

Bitcoin prices held firm above the $77,000 mark on Monday, sustaining a recent rally driven by expectations for favorable U.S. regulation and a looser financial environment. The leading cryptocurrency was trading at $77,091.1, a gain of 1.3%, as of 1:47 AM ET, according to Investing.com data.

Regulatory Optimism Fuels Rally

Recent momentum follows a surge last week that saw Bitcoin climb above $79,000. The move was largely attributed to a call from U.S. President Donald Trump for lawmakers to advance a "reasonable version" of the stalled Clarity Act, which aims to establish a comprehensive regulatory framework for the digital asset industry in the United States.

The bill has been delayed in Congress for over a year amid disagreements on key details, including whether cryptocurrencies should be classified as securities or commodities and how to handle yield payments from stablecoins. Despite the presidential push, the timeline for the Clarity Act's passage into law remains uncertain.

Macro Tailwinds Provide Support

Broader market sentiment for speculative assets has also improved following signals from the U.S. Treasury last week. The Treasury announced it would double the size of its long-term bond buybacks in a move intended to suppress yields.

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Investors widely interpret this action as an injection of liquidity into the financial system, which often benefits riskier assets like cryptocurrencies. This has also fueled a "currency debasement" narrative, where concerns over the expanding U.S. fiscal deficit drive capital into alternative stores of value, including both crypto and gold, as a hedge against potential dollar weakness.

Broader Crypto Market Rises

The positive sentiment was reflected across the wider cryptocurrency market, though many assets pulled back slightly from highs reached over the weekend. Other major digital assets also posted gains on Monday:

• Ether (ETH) rose 2.7% to $2,457.34.
• XRP advanced 2.4% to $1.4784.
• Other major tokens including Solana (SOL), Cardano (ADA), and BNB each gained over 2%.