Bitcoin Holds $65,000 as US Clarity Act Bill Advances

Bitcoin held steady around the $65,000 mark on Thursday, with traders focused on developments surrounding the United States Clarity Act. The cryptocurrency has traded in a narrow range over the past 24 hours, reflecting cautious optimism as the bill moves closer to a full floor vote.

Clarity Act Progress

The Clarity Act, which seeks to establish a federal framework for classifying digital assets as commodities or securities, has cleared a key committee hurdle. Sources familiar with the process indicate bipartisan support has strengthened in recent weeks, though amendments are still being negotiated.

Market participants view the bill as a potential catalyst for institutional adoption. If passed, it would replace the current patchwork of state-level regulations with a unified standard, reducing legal uncertainty for exchanges and investors alike.

Bitcoin Price Action

Bitcoin changed hands at $65,120 on major exchanges, roughly flat from the same time on Wednesday. Volumes were slightly below the 30-day average, suggesting traders are waiting for clearer signals before committing capital.

The $64,500 to $65,500 range has acted as both support and resistance over the past week. Analysts note that a breakout above $66,000 could trigger short-covering, while a drop below $64,000 might invite buyers looking for a dip.

Broader Market Sentiment

Other major cryptocurrencies mirrored Bitcoin's subdued moves. Ether traded near $3,450, while Solana hovered around $145. The total crypto market capitalisation remained above $2.4 trillion.

Equity markets in Asia and the US futures were mixed, with investors digesting corporate earnings and interest rate expectations. The dollar index edged lower, providing a modest tailwind for risk assets.

What to Watch

The Clarity Act is expected to face further debate in the coming weeks. A vote in the House could come as early as next month, though the timeline remains fluid. Any amendments that water down key provisions could dampen market enthusiasm.

Investors are also monitoring the Federal Reserve's next policy meeting. While rate cuts are not expected until later in the year, any shift in language could influence capital flows into digital assets.

For now, Bitcoin appears to be in a wait-and-see mode. The next significant move will likely depend on whether the Clarity Act gathers enough momentum to pass, or whether political headwinds slow its progress.