Bitcoin Rises as U.S Names Fed Chair, Boosts Crypto Regulation
Bitcoin (BTC) gained 2.15% to $81,379.98 on the U.S. Clarity Act and Senate approval of Kevin Warsh as Federal Reserve chairman, fuelling optimism across the crypto market.
BTC’s price increase outpaced a broadly rising cryptocurrency market, driven by optimism about U.S. crypto regulatory progress and the possible easing of geopolitical tensions following President Donald Trump’s meeting with Chinese President Xi Jinping on Thursday.
President Xi Jinping offers help to Iran and pledges no military support. The news, coupled with a Saudi peace proposal, immediately boosted risk assets, with Bitcoin jumping to $81k.
This is bullish for Bitcoin in the short term, highlighting its sensitivity to geopolitical developments that reduce global risk premiums.
Aiding the momentum, the U.S. Senate Banking Committee voted 15-9 to advance the Digital Asset Market Clarity Act. This landmark bill aims to establish clear jurisdictional lines between the SEC and CFTC, ending years of regulatory ambiguity for digital assets like XRP.
The White House is targeting a July 4 signing deadline. This is bullish for cryptocurrency because it moves the U.S. closer to a permanent, legislated framework that confirms XRP’s status as a digital commodity.
Crypto analysts said reduced regulatory risk could unlock more institutional capital and product development. Bitcoin found support near the 38.2% Fibonacci retracement level of $80,753 and its 30-day average.
The 24-hour trading volume surged 31.6%, confirming the bounce, while total liquidations fell 55% to $49.45 million, indicating reduced forced selling.
The drop drew significant buying interest at a key technical level, triggering a relief rally.
Traders said if bullish momentum holds and the price stays above $80,000, a push toward $82,000 is probable. However, failure to reclaim this level, or a break below $80,000, could trigger a retest of stronger support near $76,800.
U.S. spot Bitcoin ETFs recorded a $635 million net outflow on May 13, the largest single-day exit since late January. This snapped a multi-week inflow streak, led by BlackRock’s IBIT.
Analysts link the reversal to hawkish macro signals: April’s CPI hit 3.8%, rate-cut odds faded, and the confirmation of new Fed Chair Kevin Warsh cemented a restrictive policy stance.
