Bitcoin edged higher on Thursday but remained below its recent highs as investors awaited further regulatory developments in the United States.
Despite the recent rally, lingering concerns over the U.S.-Iran conflict and rising expectations for interest rate hikes continued to weigh on crypto sentiment, keeping investors cautious following a strong August.
As of 10:11 GMT, Bitcoin was up 0.39 percent at $77,606 after climbing as high as $82,000 in late August.
Institutional buying supports Bitcoin
Recent buying by corporate Bitcoin giant Strategy Inc., alongside optimism over further U.S. crypto regulation, helped Bitcoin hold on to most of its recent gains.
However, mounting concerns over higher interest rates in major developed economies, particularly the U.S. and Japan, weighed on broader market sentiment.
Bitcoin’s strong rally in recent weeks has also come despite a nearly 10-basis-point rise in 10-year U.S. Treasury yields, a notable trend given that higher yields typically reduce the appeal of non-yielding assets such as Bitcoin and gold.
Markets await Clarity Act progress
In regulatory developments, U.S. Securities and Exchange Commission Chair Paul Atkins said earlier this week that the Senate is expected to hold a key procedural vote on the Clarity Act on September 15.
Atkins said the legislation, which seeks to establish a clearer regulatory framework for cryptocurrencies in the U.S., could reach President Donald Trump’s desk as early as this month.
The SEC chair also said the agency is developing its own regulatory framework, known as the Regulation Crypto Assets proposal, which could operate alongside the long-delayed legislation. He added that the SEC could move forward with its framework even if the Clarity Act fails to pass Congress.
Crypto markets have been closely monitoring the Clarity Act, viewing it as a major step toward providing greater regulatory certainty for the industry. However, the legislation has faced prolonged delays amid disagreements over provisions concerning stablecoin yield payments and restrictions on policymakers trading crypto assets.
Read: Bitcoin slips to $76,567 as renewed Mideast tensions, higher yields weigh
Expectations for higher interest impact investor sentiment
Broader cryptocurrency prices traded in a narrow range on Thursday, as concerns over the U.S.-Iran conflict and expectations for higher interest rates kept demand for riskier assets subdued.
Iran launched fresh strikes against U.S. bases in Kuwait late Wednesday, while reports suggested President Donald Trump was considering steps to ease the ongoing conflict with Tehran.
Meanwhile, markets largely maintained expectations for a Federal Reserve rate hike in September following hawkish remarks from Chair Kevin Warsh last week. Expectations for a Bank of Japan rate hike have also strengthened after Governor Kazuo Ueda said policymakers would discuss a potential increase at their September meeting.
Ether, the world’s second-largest cryptocurrency, rose 1.03 percent to $2,397.47, while XRP gained 3.3 percent to $1.3635.
Cardano was among the strongest performers, climbing 6.76 percent, while Solana advanced 2.05 percent and BNB rose 2.92 percent.
Among memecoins, Dogecoin gained 2.57 percent, while $TRUMP edged 0.9 percent higher.
