Bitcoin Weakens Around 65,000 USD Mark Amid Middle East Tensions and CLARITY Act Delays
Bitcoin has shown weakness around the 65,000 USD level, influenced by geopolitical risks in the Middle East and delays in processing the U.S. digital asset market structure bill, known as the CLARITY Act.
As of 9:20 a.m. (Korean time) on Friday, Bitcoin was trading at 95.04 million KRW (approximately 64,900 USD) on the domestic cryptocurrency exchange Bithumb, down 0.02% from the same time the previous day.
Simultaneously, global cryptocurrency data platform CoinMarketCap reported Bitcoin at 64,903 USD, a 1.96% decrease from the previous day.
Bitcoin had climbed to around 66,900 USD on the 21st but subsequently reversed course, dipping into the 64,000 USD range. While it has partially recovered, it continues to exhibit weakness around the 65,000 USD mark.
Analysts attribute this decline to a combination of geopolitical tensions in the Middle East and delays in processing the CLARITY Act, which have collectively dampened investor sentiment.
President Donald Trump’s mention of potential military action against Iran, coupled with Houthi rebel attacks on Saudi oil tankers, has led to a surge in international oil prices. Brent crude has surpassed 100 USD per barrel.
The uncertain timeline for the U.S. Congress to process the CLARITY Act has added further pressure. Senate Minority Leader John Thune stated that the bill is unlikely to pass before Congress begins its summer recess on August 7. Market analysts suggest that if the bill’s processing is delayed until after September, expectations for digital asset institutionalization may wane in the short term.
Senate Minority Leader: CLARITY Act Unlikely to Pass Before Recess
Experts now predict that the chances of passing the CLARITY Act before the summer recess have diminished significantly.
According to reports on Thursday, Senate Minority Leader Thune stated that it appears unlikely the CLARITY Act will pass before the summer recess.
Industry insiders believe that to improve the bill’s chances of passage this year, substantial progress is necessary by August 7, the final legislative day before recess. However, Thune explained that even initiating the review process before the recess could secure the possibility of processing the bill in the September session.
Goldman Sachs CEO Backs CLARITY Act, Aims for Fair Competition
David M. Solomon, Chief Executive Officer (CEO) of Goldman Sachs Group, Inc., has voiced his support for the CLARITY Act, which aims to structure the U.S. digital asset market.
On Thursday, Solomon stated that he strongly supports advancing the CLARITY Act to establish market structure and foster innovation. He added that it would enhance market stability and create a level playing field for competition.
The CLARITY Act seeks to delineate the supervisory authority of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over digital assets. Solomon’s endorsement contrasts with the opposition from some major bank executives, including JPMorgan CEO James Dimon.
AI-Driven DeFi Hacking Crisis Not Yet a Reality, Existing Vulnerabilities Remain Key
Experts suggest that concerns over a catastrophic artificial intelligence (AI) driven hacking crisis in Decentralized Finance (DeFi) may be premature.
On Thursday, Haseeb Qureshi, Managing Partner at Dragonfly, stated that fears of a DeFi hacking crisis are largely unfounded. He noted that even including April’s large-scale hacking incident, both monthly and annual average losses from hacks have trended downward this year.
Experts maintain that the primary causes of current Web3 security incidents are key theft, infrastructure vulnerabilities, and user errors, rather than AI. However, they caution that as AI enhances attack speed and scale, security threats may escalate in the future.