Bitcoin Holds Above $78K as Senate Clears Clarity Act Yield Compromise and Markets Hit Record Highs

Bitcoin Price Recovers After Midweek Volatility

Bitcoin traded near $78,180 after rebounding from a midweek low around $75,500. The recovery followed geopolitical tensions linked to Iran, which briefly pressured risk assets before easing after reports of ceasefire discussions. Despite volatility, Bitcoin remained up around 0.8% for the week and briefly tested the $80,000 level.

Senate Stablecoin Yield Agreement Removes Key Regulatory Block

A major policy development came as the US Senate advanced compromise language under the CLARITY Act. The revised framework, negotiated by Senators Thom Tillis and Angela Alsobrooks, prohibits stablecoin issuers from paying yield purely on reserve holdings while allowing rewards tied to user activity on platforms.

The adjustment removes a key dispute between crypto firms and banking lobby groups, clearing the way for a Senate Banking Committee markup and further legislative progress. Treasury and the Commodity Futures Trading Commission would later define detailed rules once the bill becomes law.

Equities Hit Record Highs on Tech Strength

US equities also supported broader risk sentiment. The S&P 500 Index reached another record high, marking its fifth consecutive weekly gain. The Nasdaq also advanced on strong earnings from major technology firms, reinforcing positive macro conditions for risk assets.

Market Outlook Driven by Macro and Liquidity Conditions

Analysts note that Bitcoin’s recent range-bound movement reflects macro uncertainty rather than crypto specific weakness. ETF flows and institutional demand remain key variables, with expectations that renewed inflows or clearer Federal Reserve signals could drive the next breakout.

Altcoins remained mixed, with Ethereum holding near $2,310, XRP around $1.39, and Solana near $84.57, while Dogecoin outperformed with strong futures activity. The overall market remains positioned for a catalyst-driven move beyond current resistance levels.