Bitcoin Rises to One-Week High on Renewed Optimism for US Crypto Bill

Bitcoin rebounded from a weekly loss on Monday, climbing to its highest price in a week amid renewed optimism for the passage of a landmark U.S. cryptocurrency bill. The price gains followed reports that a key hurdle for the legislation may have been cleared.

The world's largest cryptocurrency rose 1.9% to $78,764.8 by late Monday trading, according to Investing.com data. The move marks a recovery from the prior week, which saw a 3.2% decline.

Legislative Progress Boosts Sentiment

Market sentiment improved after an updated version of the digital asset legislation, known as the Clarity Act, was released Sunday. The bill, which passed the Senate Banking Committee in May, has since stalled over the need to secure 60 votes for full Senate approval.

In a social media post, Senator Cynthia Lummis (R-Wyo.) stated that the new text incorporates significant changes to meet Democratic demands. According to Lummis, former President Trump voluntarily agreed to new ethics provisions that would apply to federally elected officials and judges.

"This new text includes more than 120 of Democrats’ demands," Senator Lummis said, adding that a vote could occur as soon as Tuesday. She argued that a 'no' vote would mean "handing American leadership in digital assets to our foreign competitors, and leaving Americans with zero protections."

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Broader Market Picture

The rally in digital assets occurred against a mixed backdrop for broader risk sentiment. Investors are weighing concerns over a potential slowdown in AI development and elevated oil prices ahead of a highly anticipated Federal Reserve interest rate decision on Wednesday, where the central bank is expected to announce its first rate hike in over three years.

Other major cryptocurrencies also posted gains alongside Bitcoin:

• Ether (ETH): Rose 1.6% to $2,548.08
• XRP: Advanced 6.5%
• Solana (SOL) and Cardano (ADA): Climbed more than 1%

In other industry news, Bitmine Immersion Technologies reported Monday that it had expanded its Ethereum treasury to 5,956,378 ETH, valued at approximately $15 billion. The company's holdings now represent about 4.9% of Ethereum's total supply.