Key Takeaways
- Bitcoin hit its highest level in nearly a month on Wednesday, surging about 8% over the past 24 hours to as high as $74,000.
- President Trump slammed banks for stalling the passage of the Clarity Act, a measure that is expected to boost the crypto industry.
- Cathie Wood’s ARK Invest recently added to its positions in crypto-linked stocks Coinbase and Robinhood, which also gained on Wednesday.
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Bitcoin (BTCUSD) rallied over the last 24 hours, pushing prices to as high as $74,000 for the first time since early February—signs of an early thaw that appear to be giving investors hope that a recovery is underway. Altcoins, including ether (ETHUSD) and sol (SOLUSD), also rose, helping drive the overall crypto market back to $2.5 trillion in market capitalization, according to data compiled by Messari.
The surge in crypto prices coincided with President Donald Trump throwing his support behind a key crypto bill called the Clarity Act—the passing of which crypto experts have said was the sole, near-term catalyst that could pull the coin market out of its months-long rut. Meanwhile, a major investor, Cathie Wood’s ARK Invest, recently picked up more shares of Coinbase (COIN) and Robinhood (HOOD), crypto-linked stocks that are also gaining on Wednesday.
“The Banks should not be trying to undercut The Genius Act, or hold the Clarity Act hostage. They need to make a good deal with the Crypto Industry because that’s what’s in the best interest of the American People,” Trump said.
WHY THIS MATTERS TO YOU
The disagreement between banks and the crypto industry is, in a nutshell, over yield. Crypto companies pay rewards on stablecoins, which aim to stay pegged to fiat like the U.S. dollar—activity that banks argue would compete with deposit accounts.
The Clarity Act, which would establish a general framework to evaluate whether cryptocurrencies were securities or commodities, stalled in the Senate in January amid a standoff between the industry and big banks over stablecoin rewards. Trump’s missive, posted to Truth Social Tuesday evening, would appear to have renewed optimism that the bill would pass.
If it does, and stablecoin rewards are allowed, crypto platforms including Coinbase, and ventures like the Trump family-backed World Liberty Financial, which has its own dollar-pegged stablecoin USD1, stand to benefit.
That crypto prices held relatively steady in spite of geopolitical tensions driving volatility in risk-assets earlier this week bodes well for the coin market.
However, elevated macroeconomic risks—widening credit spreads, and stress in private credit markets—remain headwinds, according to Sean Farrell, Fundstrat’s head of digital asset strategy.
“This is likely a rally to rent rather than own,” he said, in a note yesterday.