Bitcoin traded in a narrow range on Thursday, holding below recent highs as investors focused on upcoming cryptocurrency regulation in the United States.
The broader crypto market also remained cautious. Concerns over the U.S.-Iran conflict and expectations for higher interest rates continued to limit demand for risk assets following Bitcoin’s strong performance in August.
Bitcoin rose 0.2% to around $77,759 by 02:01 ET. The cryptocurrency had climbed as high as $82,000 in late August before giving back part of those gains.
Bitcoin Holds Below $78,000
Recent Bitcoin purchases by major corporate holder Strategy Inc. helped support the market.
Optimism surrounding clearer U.S. crypto regulation also provided some support for Bitcoin prices.
However, growing expectations for higher interest rates in major economies, particularly the United States and Japan, continued to weigh on investor sentiment.
Higher interest rates can reduce demand for speculative assets such as cryptocurrencies by making lower-risk investments more attractive.
SEC Chair Expects Progress on the CLARITY Act
U.S. Securities and Exchange Commission Chair Paul Atkins said earlier this week that he expects the Senate to hold an important procedural vote on the CLARITY Act on September 15.
The proposed legislation is designed to establish a clearer regulatory framework for cryptocurrencies and digital assets in the United States.
Atkins also said he believes the legislation could reach President Donald Trump’s desk during September.
SEC Prepares Its Own Crypto Regulatory Framework
The SEC is also developing a separate proposal known as Regulation Crypto Assets.
According to Atkins, the framework could operate alongside legislation passed by Congress. He also indicated that the SEC could move forward with its own regulatory approach even if the CLARITY Act fails to advance.
Atkins described the proposal as an important step toward strengthening the United States’ position in the global cryptocurrency industry.
The crypto market has been closely watching the CLARITY Act because investors see clearer regulation as an important factor for institutional adoption and long-term market confidence.
However, progress on the bill has faced delays.
Lawmakers have disagreed over several issues, including stablecoin yield payments and proposed restrictions on cryptocurrency trading by policymakers.
U.S.-Iran Tensions Pressure Crypto Sentiment
Geopolitical concerns also continued to affect cryptocurrency prices.
Iran launched additional strikes against U.S. bases in Kuwait late Wednesday. At the same time, reports suggested that President Trump could seek to reduce tensions in the conflict with Tehran.
Uncertainty surrounding the situation kept investors cautious and reduced demand for more speculative assets.
Interest Rate Expectations Weigh on Crypto
Interest rate expectations were another major factor influencing cryptocurrency markets.
Investors continued to price in the possibility of a Federal Reserve rate hike in September following hawkish comments from Fed Chair Kevin Warsh.
Expectations for a possible Bank of Japan rate increase also strengthened.
Bank of Japan Governor Kazuo Ueda said policymakers would discuss the possibility of raising rates during the central bank’s September meeting.
Higher borrowing costs in major economies could create additional pressure on Bitcoin and other cryptocurrencies.
Ethereum and Altcoins Trade Mixed
The broader cryptocurrency market showed mixed performance on Thursday.
Ether, the second-largest cryptocurrency by market capitalization, fell 0.7% to approximately $2,405.
XRP gained 1.6%, while Cardano was one of the stronger performers with a rise of around 4%.
Solana increased 0.8%, while BNB advanced 1.2%.
Among major memecoins, Dogecoin climbed 1.4%, while the TRUMP token fell around 1%.
Crypto Markets Await Regulatory and Macro Signals
Bitcoin remains supported by corporate buying and expectations for clearer U.S. cryptocurrency regulation.
However, geopolitical uncertainty and the possibility of higher interest rates continue to limit broader market optimism.
Investors are now closely watching developments surrounding the CLARITY Act, Federal Reserve policy and the U.S.-Iran conflict for clues about Bitcoin’s next major move.
