Bitcoin’s recent surge came to an abrupt halt on Thursday, as the leading cryptocurrency swiftly dropped below the $96,000 mark following a setback in crucial U.S. digital asset legislation late Wednesday.
This downturn interrupted Bitcoin’s upward momentum that had been building over several days, reaching just under $98,000 on Wednesday.
Stocks linked to cryptocurrencies also experienced significant losses. Companies such as Coinbase (COIN), Circle (CRCL), and MicroStrategy (MSTR) saw their shares fall between 3% and 5%.
The week’s rally for Bitcoin—from $90,000 up to a two-month peak—was driven by global tensions surrounding Iran and speculation about possible U.S. intervention there. During the first three days of this week alone, U.S.-listed Bitcoin ETFs attracted more than $1.7 billion in new investments, marking their strongest inflow period in months.
However, today’s reversal coincided with indications that the U.S. might refrain from taking action against Iran and was further impacted by the Senate Banking Committee canceling its scheduled markup session on crypto market regulations for Thursday. This cancellation followed Coinbase withdrawing its support for the proposed bill late Wednesday evening.
While cryptocurrencies faltered today, traditional U.S. stock markets showed strength—Nasdaq climbed nearly 1%, and the S&P 500 rose by approximately 0.65%.