Bitcoin dropped under the $65,000 mark on Monday, retreating as higher oil prices dampened investor appetite for risk. Market sentiment was also affected by another Bitcoin sale from major corporate holder Strategy.
The leading cryptocurrency was down 1.6%, trading at $64,147.9 as of 17:00 ET (21:00 GMT).
Traders focus on U.S. inflation data for Federal Reserve signals
Bitcoin and the broader crypto market gained support on Friday after U.S. employment data revealed the first monthly decline in nonfarm payrolls since February, driven largely by losses in local government education jobs. Payroll figures for May and June were also revised down by a combined 103,000 positions.
The labor report added uncertainty to the Federal Reserve’s policy outlook. While the broader job market continues to show resilience, inflation concerns remain elevated due to volatile oil prices linked to the conflict involving Iran. Some Fed officials also indicated a preference for tighter monetary policy during the central bank’s July meeting.
Following the data release, traders reduced expectations for a September interest-rate increase. Higher borrowing costs typically reduce demand for risk-sensitive assets, including cryptocurrencies.
Investors are now turning their attention to a series of key U.S. inflation reports this week for further guidance on the Fed’s next moves. The July Consumer Price Index (CPI) is due on Wednesday, followed by the Producer Price Index (PPI) on Thursday, while July retail sales data will be released on Friday.
Oil surge and Hormuz tensions weigh on crypto sentiment
Oil prices jumped nearly 5% on Monday after Iran rejected direct negotiations with the United States and reiterated that a full reopening of the Strait of Hormuz would depend on Washington meeting a series of demands. Concerns over global energy supplies intensified further following attacks by Iran-backed Houthi forces on Saudi energy facilities, prompting investors to seek safety in the U.S. dollar.
Crude prices had fallen the previous week on optimism surrounding potential U.S.-Iran talks. However, those losses narrowed as Tehran repeatedly denied claims of ongoing negotiations and reports emerged that a proposed Hormuz management framework could restrict access for U.S., Israeli, and other vessels deemed hostile.
Iranian state media reported that a parliamentary committee had approved the framework, including the proposed restrictions. Foreign Ministry spokesman Esmaeil Baqaei said Iran and Oman were still working on a joint statement governing the strait, adding that the plan would establish monitoring mechanisms for vessel traffic and involve compensation arrangements.
Tehran also reaffirmed that direct talks with Washington remain off the table, citing alleged breaches of the temporary peace agreement reached in June. Iranian officials maintained that lifting sanctions, ending the U.S. naval presence, and compensation for wartime damages are prerequisites for fully reopening the strategic waterway.
U.S. President Donald Trump responded by stating that Iran’s compensation demands would be met with U.S. claims for damages as well, adding that his negotiating team had been instructed to include the issue in any future discussions.
Strategy trims Bitcoin holdings
Separately, Strategy disclosed in a filing with the U.S. Securities and Exchange Commission that it sold 1,690 Bitcoin between August 3 and August 9 for approximately $108.6 million, at an average price of $64,262 per coin.
Following the sale, the company’s Bitcoin holdings declined to 840,447 BTC, currently worth about $54.7 billion. Strategy’s average acquisition cost remains around $75,385 per Bitcoin, representing a total investment of roughly $63.4 billion, including related expenses.
The transaction came shortly after the company raised $653.1 million through the sale of more than 6.5 million shares of MSTR stock. Strategy said the proceeds were used to repurchase over 1.15 million shares of its STRC preferred stock and strengthen its cash position, which stood at $4.65 billion as of August 9.
Altcoins track Bitcoin lower
The broader cryptocurrency market also traded in negative territory on Monday, with most major altcoins posting losses alongside Bitcoin.
Ethereum declined 2.4% to $1,877.78.
XRP dropped 2.3% to $1.0189.
Solana lost 1.3%.
Cardano fell 2.6%.
Dogecoin slipped 1%.
The pullback across digital assets reflected a combination of risk-off sentiment driven by geopolitical uncertainty, rising energy prices, and investor caution ahead of key U.S. inflation data later this week.
Crypto Regulation Could Enter a New Era as the CLARITY Act Faces a Crucial Senate Decision
The rules governing the crypto industry could be rewritten within days. The CLARITY Act, a more than 600-page bill designed to define which US regulators oversee different types of digital assets, is approaching a critical Senate deadline on August 7. As investors wait for clarity, Bitcoin continues to trade within a narrow range amid uncertainty. Here’s a straightforward breakdown of what the legislation proposes and what it could mean for crypto holders.
The CLARITY Act represents one of the most ambitious crypto market-structure proposals in US history and is now approaching a decisive stage.
The Senate is expected to remain in session only through August 7, yet no official floor vote had been scheduled as of August 3. This leaves lawmakers with only a limited window to determine the bill’s future. The House passed its version in July 2025 with bipartisan backing, while a consolidated Senate draft was introduced in late July.
However, the path to approval remains challenging. The bill needs 60 votes to overcome a potential filibuster, while Republicans control approximately 53 Senate seats, making support from Democratic lawmakers critical.
Current prediction markets estimate only about a 26% probability that the legislation becomes law in 2026. If the Senate window closes without action, the next meaningful opportunity may not arrive until after the midterm elections, potentially extending regulatory uncertainty for the crypto market for another year or longer.
What the CLARITY Act Actually Changes
At its heart, the CLARITY Act attempts to answer the biggest unresolved question in crypto for the past decade: which regulator is responsible for overseeing which digital assets?
For years, the SEC has argued that most tokens should be treated as unregistered securities, while the CFTC has maintained that many cryptocurrencies function more like commodities but lacked the authority to regulate spot markets. This uncertainty left crypto projects unsure about compliance requirements, exchanges unclear about which assets they could list, and investors uncertain about regulatory protections.
The bill aims to resolve this confusion through several key provisions:
Clear division of authority between the SEC and CFTC
The legislation creates a defined framework for determining regulatory responsibility. If a token’s value relies heavily on the efforts of a central organization or development team, it would be classified as a security under SEC oversight. If a blockchain network becomes sufficiently decentralized, the asset could be designated as a “digital commodity” regulated by the CFTC, which would receive expanded authority over spot crypto markets.
A “maturity” pathway for tokens
The bill introduces a framework allowing tokens to transition from securities into digital commodities as networks become more decentralized. Initially, tokens are treated as securities while founders maintain significant control. Once governance becomes distributed — such as no single entity controlling a disproportionate share of tokens or decision-making power — the asset can potentially “graduate” into a digital commodity.
This creates a clearer compliance roadmap: centralized projects fall under SEC rules, while decentralized networks move toward CFTC oversight.
Crypto exchanges face stricter regulatory standards
Digital commodity trading platforms would be required to register with the CFTC and follow standards similar to traditional financial institutions, including capital requirements, risk management procedures, and market monitoring systems.
In exchange, compliant platforms would gain greater legal certainty and the ability to serve US customers without constant concern over sudden regulatory action.
Greater protection for customer assets
The bill addresses one of the biggest lessons from previous crypto exchange failures: customer funds being misused by platforms.
Under the proposed rules, customer assets must be held by qualified custodians. Platforms would need explicit user approval before using assets for activities such as staking. If an exchange becomes insolvent, properly custodied customer assets would remain the property of users rather than becoming part of the company’s bankruptcy estate.
Token fundraising gets clearer rules — with more transparency
Crypto projects would receive a more straightforward path to raising capital, but they would also face stronger disclosure obligations.
Instead of relying only on marketing materials or investor presentations, projects would need to provide ongoing information about:
Token utility and functionality
Team token ownership
Insider selling activity
Potential software and security risks
Token economics and distribution structure
Protection for self-custody and blockchain developers
The legislation protects individuals’ ability to hold digital assets in personal wallets. It also clarifies that simply developing open-source blockchain software or operating a node does not automatically make someone a regulated financial intermediary.
This removes a major area of uncertainty that has affected developers for years.
DeFi regulation focuses on actual control, not labels
The bill evaluates decentralized finance projects based on one key question: who controls the system?
Protocols powered by immutable, open-source code with no centralized control would receive greater legal protection. However, projects claiming to be decentralized while retaining administrative control — such as the ability to freeze funds or modify rules — could still be treated as centralized financial platforms and face full compliance requirements.
Stronger anti-money-laundering and consumer protections
The legislation also expands safeguards against illicit finance. The updated version includes more than 16 provisions covering areas such as:
Anti-money-laundering requirements
Know-your-customer (KYC) procedures
Transaction monitoring
Restrictions on stablecoin platforms paying fixed deposit-like returns
However, legitimate yield mechanisms linked to real economic activity, such as staking rewards, would remain permitted.
What the CLARITY Act Could Mean for the Crypto Market
Bitcoin appears to be one of the clearest beneficiaries of the proposed framework. Since it operates without a central controlling entity, it naturally fits the definition of a digital commodity. In addition, stronger asset-segregation requirements could lower counterparty risks for investors who hold crypto through centralized platforms.
Large blockchain networks with widespread adoption and decentralized governance, including Ethereum and Solana, are also positioned favorably. Their potential classification as digital commodities could remove regulatory uncertainty and make them more attractive to institutional investors that have previously stayed on the sidelines.
However, newer blockchain projects with concentrated ownership structures may face a longer path. Until they achieve greater decentralization, they would likely remain under SEC oversight, increasing compliance costs and creating additional challenges for exchange listings.
Altcoins face a market-wide selection process
Smaller cryptocurrency projects could experience a significant divide. Projects that embrace transparency and meet disclosure requirements may gain a clearer route into US markets, while tokens with limited transparency, centralized control, or concentrated ownership could struggle to secure listings on major exchanges.
The result is likely to be a more selective market rather than a broad benefit for all cryptocurrencies.
Stablecoins move closer to regulated financial products
Stablecoins would increasingly resemble regulated payment infrastructure under the proposed rules. Key requirements could include:
Full reserve backing
Regular financial attestations
Clear redemption rights for users
Restrictions on passive yield programs may force platforms to redesign stablecoin offerings. However, returns generated through genuine economic activities — such as staking or liquidity provision — would likely remain allowed.
Exchanges and brokers face higher compliance demands
Crypto trading platforms would experience some of the biggest operational changes. They would need to meet requirements related to:
Regulatory registration
Customer asset segregation
Market surveillance systems
Risk management procedures
While implementation could increase costs, exchanges would gain something the industry has long sought: a clearer legal framework and the ability to operate with greater certainty.
Potential Winners Under the CLARITY Act
The market is already reacting to the possibility of regulatory change. Bitcoin has been trading within a narrow range around $62,000–$64,000 as investors await the Senate’s decision. A clear outcome — either approval or failure — could become a catalyst for the next major market direction.
However, the broader significance extends beyond a single legislative vote. Current crypto regulations rely heavily on agency interpretations and enforcement approaches, which can change under different administrations. A federal law would provide a more permanent foundation.
The key developments to monitor are a potential Senate vote schedule or a cloture motion before August 7. Regardless of the immediate outcome, the regulatory framework outlined in the CLARITY Act could become the blueprint that shapes how the crypto market evolves going forward.
The US dollar strengthened against the Japanese yen for most of the week, extending the broader bullish trend that has dominated the pair in recent months. As long as this momentum remains intact, traders are likely to view pullbacks as buying opportunities rather than signs of a reversal.
The ¥160 level may provide initial support in the near term. If the pair falls below that threshold, additional support could emerge around ¥158, where buyers may step in once again.
Bitcoin
Bitcoin moved lower during the week, but the cryptocurrency continues to find support around the key $60,000 level. This area remains an important technical floor for the market, and traders will be closely watching whether buyers can defend it in the coming sessions.
A decisive break below $60,000 could trigger additional selling pressure, potentially opening the door for a decline toward the $50,000 level, which represents the next major support zone.
AUD/USD
The Australian dollar attempted to move higher during the week but struggled to maintain its gains, with the market retreating and signaling a degree of underlying weakness. Despite the pullback, the pair remains confined within a well-defined trading range.
The 0.6950 level continues to serve as a key support zone, while 0.7150 remains a significant resistance area. As long as these boundaries hold, AUD/USD is likely to remain range-bound, with traders looking for opportunities at the extremes of the range.
USD/MXN
The US dollar advanced against the Mexican peso during the week, but the pair continues to encounter strong resistance around the 17.50 level. This area has repeatedly attracted selling interest and remains a key barrier for further upside momentum.
A sustained break above 17.50 could signal a shift in market sentiment and pave the way for a move toward the 18.00 peso level, which would become the next major upside target.
USD/CAD
The US dollar strengthened significantly against the Canadian dollar during the week, supported by growing concerns that the Canadian economy is losing momentum. Signs of slowing economic activity and increasing recession risks have weighed on the Canadian dollar, helping to drive USD/CAD higher.
As economic conditions in Canada remain challenging, the US dollar could continue to benefit from its relative strength, particularly if investors favor safer and higher-yielding assets.
Nasdaq 100
The Nasdaq 100 posted solid gains over the course of the week, reflecting the strong bullish sentiment that continues to support the technology-heavy index. Although the market opened with a gap higher on Monday, prices later pulled back to fill that gap before resuming their upward trajectory.
The successful rebound following the gap fill suggests that buyers remain firmly in control, reinforcing the positive outlook for the index.
Gold
Gold spent most of the week under pressure, although the broader market remained relatively stable as prices continued to hold above the critical $4,000 support level. This area has become a key battleground between buyers and sellers and is likely to determine the next major directional move.
A sustained break below $4,000 could signal a significant shift in market sentiment and potentially mark the beginning of a new bearish phase. For now, however, buyers appear willing to defend this important support zone.
Silver
Silver continued to trade in a volatile and directionless manner during the week, with prices hovering around the 50-week Exponential Moving Average (EMA). Similar to gold, the metal appears to be stuck in a broad consolidation phase, lacking the momentum needed to establish a sustained trend.
The market is currently positioned between two major technical levels: $60 on the downside and $70 on the upside. These boundaries have become the primary areas to watch for the next significant breakout.
Bitcoin trades just above $76,000 on Friday, maintaining support near its 100-day EMA. The Crypto Fear and Greed Index remains stuck in a neutral-to-bearish zone, signaling subdued market sentiment. Meanwhile, Terra Classic and Zcash are finding it difficult to sustain Thursday’s gains, raising the risk of a potential bearish reversal.
Bitcoin (BTC) holds above $76,000 at the time of writing on Friday, remaining stable despite subdued broader market sentiment. Meanwhile, Terra Classic (LUNC) and Zcash (ZEC) are under pressure, struggling to maintain the gains recorded in the previous session.
Market sentiment tilts toward a bearish bias.
Market sentiment tilts bearish as CoinMarketCap’s Crypto Fear and Greed Index reads 41 on Friday, lingering near the line between neutral and fear, signaling that risk-off sentiment is increasingly taking hold among investors.
Bitcoin steadies at a key support level.
Bitcoin holds near a key support level, with the 100-day EMA around $75,719 halting its recent three-day pullback and maintaining a short-term upward bias. However, the MACD remains in negative territory below its signal line, indicating that bullish momentum may be transitioning into a corrective phase. Meanwhile, the RSI at 56 stays above the midpoint, supporting a constructive outlook without signaling overbought conditions.
A break below the 100-day EMA at $75,719 could expose the 50-day EMA near $73,786 as the next support level, while the ascending trendline around $68,707 represents a more distant structural base.
On the upside, the 200-day EMA at 82,494.55 stands as the next key resistance, and a sustained move above this level could pave the way for a fresh advance within the broader bullish trend.
Will Terra Luna and Zcash hold gains?
Terra Classic (LUNC) is trading above $0.000070 on Friday, maintaining its footing after a strong 5% rally in the previous session. The token continues to hold above its 50-, 100-, and 200-day EMAs, signaling a constructive short-term outlook.
However, momentum indicators suggest caution. The RSI is elevated near 79, deep in overbought territory, indicating that the recent upside may be stretched. At the same time, the MACD is flattening around the zero line, pointing to fading bullish momentum following the latest surge.
For now, LUNC faces clear resistance at the $0.000081 swing high. A failure to break above this level could lead to consolidation or a short-term pullback, especially given the overheated conditions.
On the downside, the 78.6% and 61.8% Fibonacci retracement levels at $0.000070 and $0.000062, respectively, act as key support zones for Terra Classic.
Meanwhile, Zcash trades below $350 on Friday, continuing to consolidate within a triangle pattern. Despite this, the broader outlook remains constructive, with price action holding firmly above the 50-, 100-, and 200-day EMAs clustered between roughly $285 and $307.
Zcash also stays above a rising support trendline near $322, indicating that buyers still dominate the medium-term structure. However, the MACD slipping below its signal line points to fading upside momentum, while the RSI at 56 keeps the bias modestly tilted to the upside.
On the upside, immediate resistance lies at the descending trendline around $357, where previous rallies have stalled. A decisive daily close above this level could trigger a stronger recovery, potentially targeting the $400 psychological level.
On the downside, initial support emerges at the rising trendline near $322, followed by the 50-day EMA around $307 and the 100-day EMA near $301. The 200-day EMA at $284 serves as a deeper and more critical support level should selling pressure intensify.
