Bitcoin‘s (BTC) price surged past $59,000 early Wednesday in U.S. trading hours before settling at $57,400 in the afternoon. The largest cryptocurrency by market cap remained range-bound due to selling pressures from Germany and steady inflows into bitcoin exchange-traded funds (ETFs).
German Bitcoin Sales and Steady ETF Inflows
The German government’s liquidation of seized bitcoin holdings has dropped below a $1 billion valuation after days of sales to crypto exchanges. The initial stash of nearly 50,000 bitcoins, seized from the online piracy website Movie2k, has dwindled to 13,110, according to Arkham Intelligence.
Despite these significant sell-offs from Germany, U.S. spot bitcoin ETFs saw robust inflows at the start of the week. Farside Investors reported combined inflows of $511.2 million into these ETFs on Monday and Tuesday.
Crypto Regulation and Congressional Actions
Wednesday could mark a pivotal day for U.S. crypto regulation as the House of Representatives votes on whether to override President Biden’s veto of a bill aiming to overturn the Securities and Exchange Commission’s (SEC) special regulations for crypto asset custodians. The SEC’s policy presents challenges for traditional financial institutions wishing to offer crypto custodial services.
Overturning this policy would facilitate traditional banks in serving as custodians of digital assets for their customers. However, Custodia Bank CEO Caitlin Long expressed doubts on social media platform X, suggesting that Congress might lack the votes to overturn the veto.
Simultaneously, a meeting between crypto industry representatives, key Democratic leaders, and White House officials was scheduled for Wednesday, organized by Democratic Rep. Ro Khanna of Silicon Valley. Despite this, the Democratic Party has been slow to recognize crypto supporters as a potential voting bloc, while Republican presidential candidate Donald Trump has actively engaged with them, promising to reduce the regulatory burdens imposed by the SEC under the Biden administration. Earlier this week, Republicans included protections for crypto activities, such as bitcoin mining and self-custody of crypto assets, in their official party platform.
CFTC and Federal Reserve Chair Testify on Crypto and Economic Policy
On Wednesday, the Senate held a hearing on digital commodities oversight featuring testimony from Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam. Behnam highlighted the lack of legislative action, stating, “What has concerned me most throughout the expansion of this digital asset class is that while everyday Americans fall victim to one digital asset scam after another, there remains no completed legislative response. I have repeatedly been asked by members of Congress what I am doing to protect their constituents.”
Additionally, market participants closely watched Federal Reserve Chairman Jerome Powell’s second day of testimony in Congress for clues on future interest rate policies.
Related Topics:
