Bitcoin rallied even as headlines focused on a $100 million hack. 3d illustration
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Bitcoin prices climbed on Monday, August 3, posting a modest gain even as headlines were dominated by a hack that resulted in the loss of over $100 million’ worth of the digital currency.
The world’s most valuable cryptocurrency climbed to more than $64,000 close to 3:30 p.m. EST, according to Coinbase data from TradingView.
At this point, the digital asset was up roughly 2.9% after falling to approximately $62,200 earlier in the day, additional Coinbase data from TradingView reveals.
When explaining this upward movement, analysts offered differing explanations.
“Bitcoin’s move from roughly $62,200 to $63,900 appears to reflect a combination of improving macro sentiment and growing optimism around U.S. crypto regulation rather than a single catalyst,” Terence McMenamin, CEO and cofounder of innovative lending firm Techdollar, stated via email.
“Investors have become increasingly optimistic that the Federal Reserve could shift toward a more accommodative policy if economic data continues to soften, supporting risk assets like equities and cryptocurrencies,” he continued.
“At the same time, the market is increasingly pricing in the possibility that the CLARITY Act could advance before Congress recesses,” McMenamin claimed, referring to the legislation that would outline the jurisdiction that the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have over digital currencies.
“Many institutional investors have been explicit that clearer regulatory rules are a prerequisite for deploying more capital, so each credible headline suggesting progress on the legislation has the potential to bring sidelined investors back into the market.”
He also mentioned the Coldcard hack, which took place after attackers identified the patterns that Coldcard hardware devices were using to create recovery phrases, according to a document generated by financial technology firm Block that was reported on by Fortune.
The hack “failed to trigger a meaningful selloff, suggesting the market had already absorbed much of the recent pessimism.”
“When negative headlines struggle to push prices lower, it often indicates that bearish positioning has eased and buyers are becoming more willing to step in,” he added.
Market expert Tim Enneking, managing partner of Psalion, offered a different take on the matter, stating that through emailed commentary that “The small move up was probably due to some mildly positive news with respect to the US-Iran ‘war’ and a very positive start to the week on Wall Street due to solid earnings reports.”
Jeff Anderson, managing director at STS Digital, also weighed in, speaking to a broader rise in the digital asset markets.
“Bitcoin’s move higher tracks other risk assets, with the NASDAQ rebounding nearly 2% after last week’s washout,” he stated.
“Stretched positioning in AI and chipmakers triggered a cascade in valuations on Thursday, which rippled into digital assets over the weekend.”