Bitcoin moved higher on Thursday, extending its recent rebound as investors assessed a proposed U.S. bill aimed at establishing a clearer regulatory framework for cryptocurrencies.
The world’s largest digital asset has recovered from a slow start to the year after Strategy, the biggest corporate holder of Bitcoin, disclosed a sizeable purchase earlier this week. Even so, Bitcoin remains well below the closely watched $100,000 threshold, with overall risk appetite for cryptocurrencies still subdued.
Bitcoin gained 1.4% to $96,370 by 00:05 ET (05:05 GMT), marking its strongest level in roughly two months.
U.S. Senate delays crypto bill after Coinbase opposition
Momentum around U.S. crypto regulation slowed after the U.S. Senate Banking Committee announced on Wednesday that it had postponed discussions on a draft crypto bill. The delay came just hours after Brian Armstrong, chief executive of Coinbase Global Inc, publicly opposed the proposal.
Senator Tim Scott said in a social media post that talks on the bill, originally scheduled for Thursday, had been pushed back. Earlier the same day, Armstrong said Coinbase could not support the legislation in its current form.
Armstrong criticised several elements of the proposal, including a potential ban on tokenised equities, restrictions on decentralised finance, reduced oversight by the Commodity Futures Trading Commission, and draft amendments that he said would eliminate rewards on stablecoins. He argued that the bill would leave the industry worse off than the current regulatory environment, adding that Coinbase would “rather have no bill than a bad bill.”
Coinbase, the largest cryptocurrency exchange in the United States, was a major donor to pro-crypto causes during the 2024 election cycle and is widely seen as a key stakeholder in shaping future U.S. crypto policy. The broader industry has long called for comprehensive regulation to clarify whether digital tokens should be treated as securities or commodities.
Altcoins lag as risk appetite stays weak
While Bitcoin advanced, broader crypto markets struggled to keep pace, with most alternative tokens remaining under pressure amid fragile investor sentiment.
Geopolitical risks continued to weigh on markets, as traders remained cautious about potential U.S. involvement in Venezuela and Iran. Despite Bitcoin’s rebound, the asset continued to trade at a discount on U.S. platforms such as Coinbase compared with global averages—a trend in place since mid-December that suggests retail demand remains soft.
Among major altcoins, Ether slipped 0.6% to $3,312, XRP fell 2.4%, and BNB declined 0.5%. Solana traded flat, while Cardano dropped 4.6%. In the memecoin space, Dogecoin lost 2.7%, and the $TRUMP token fell 4.1%.
