Bitcoin Extends Recovery as U.S. Crypto Bill Faces Delay

Bitcoin rose on Thursday, extending a recent recovery as markets digested developments around a proposed U.S. bill aimed at establishing a regulatory framework for cryptocurrency.

The world’s largest crypto rebounded from a sluggish start to the year after top corporate holder Strategy disclosed a major purchase this week. Still, Bitcoin remained well below the $100,000 level, with overall risk appetite for crypto assets staying under pressure.

Bitcoin climbed 1.4% to $96,370.1 by 00:05 ET (05:05 GMT), marking its strongest level in two months.

U.S. Senate Delays Crypto Bill After Coinbase Pushback

The U.S. Senate Banking Committee said on Wednesday it had postponed discussion of a proposed crypto bill, just hours after Coinbase CEO Brian Armstrong voiced opposition to the measure.

Senator Tim Scott announced that the discussion, originally set for Thursday, had been delayed.

Armstrong criticized several elements of the bill, including a proposed ban on tokenized equities, restrictions on decentralized finance, reduced oversight by the CFTC, and draft amendments that could eliminate rewards on stablecoins.

“This version would be materially worse than the current status quo. We’d rather have no bill than a bad bill,” Armstrong said.

Coinbase, the largest crypto exchange in the United States, is a major stakeholder in the regulatory process and was a significant donor to pro-crypto entities during the 2024 election cycle.

The crypto industry has long pushed for a comprehensive regulatory framework to clarify whether digital tokens should be treated as securities or commodities.

Altcoins Lag as Risk Appetite Remains Weak

Broader crypto prices lagged Bitcoin’s advance, as risk appetite across markets remained fragile amid elevated geopolitical tensions, including concerns over potential U.S. action in Venezuela and Iran.

Despite Bitcoin’s recovery, the asset continued to trade at a discount on Coinbase compared with global averages, a trend in place since mid-December, signaling weak U.S. retail demand.

Among major altcoins, Ether fell 0.6% to $3,312.22, XRP dropped 2.4%, and BNB slipped 0.5%. Solana was flat, while Cardano fell 4.6%.

In the memecoin space, Dogecoin declined 2.7%, and $TRUMP shed 4.1%.