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US Senator Sets September Crypto Bill Deadline as Bitcoin (BTC) Slumps Below $106K Amid Market Turmoil | Flash News Detail | Blockchain.News
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7/1/2025 7:02:03 PM

US Senator Sets September Crypto Bill Deadline as Bitcoin (BTC) Slumps Below $106K Amid Market Turmoil

US Senator Sets September Crypto Bill Deadline as Bitcoin (BTC) Slumps Below $106K Amid Market Turmoil

According to @StockMKTNewz, U.S. Senator Tim Scott has set a new deadline of September 30 for completing the crypto market structure bill, providing a clearer timeline for regulatory clarity. Despite this legislative development, the cryptocurrency market experienced a broad selloff, with Bitcoin (BTC) falling over 2.5% to trade below $106,000. The source reports that altcoins faced steeper declines, with Ether (ETH), Solana (SOL), and XRP dropping between 5% and 7%. This market downturn is attributed to wider risk-off sentiment fueled by President Trump's warnings of new tariffs and potential geopolitical conflict, according to the report. Weaker economic data, including a softer Producer Price Index and high initial jobless claims, also adds complexity for traders evaluating the Federal Reserve's next move.

Source

Analysis

Crypto Regulation Timeline Solidifies as Market Faces Headwinds


The cryptocurrency markets are navigating a complex environment marked by significant legislative developments in the United States and mounting macroeconomic pressures. On Thursday, U.S. Senator Tim Scott, a key figure as the chairman of the Senate Banking Committee, provided a firm timeline for comprehensive crypto market structure legislation. In a discussion with White House crypto adviser Bo Hines, Scott committed to finalizing the bill by September 30. This deadline, while later than President Trump's aggressive push for a resolution before the August congressional break, provides a clearer roadmap for the industry. Senator Cynthia Lummis, who is deeply involved in drafting the bill, concurred with the new timeline. This legislative clarity is a double-edged sword for traders. While a structured regulatory framework is bullish long-term, promising to attract institutional capital, the short-term process can create uncertainty and volatility as lawmakers debate critical details. The market's reaction to this evolving landscape was decidedly risk-off on Thursday.



Bitcoin Price Falters as Altcoins See Steeper Declines


As regulatory discussions continued, the digital asset market experienced a broad-based selloff that intensified into the U.S. evening. Bitcoin (BTC) struggled to maintain its footing, slipping below the psychological $106,000 level. According to market data, the BTC/USDT pair fell 1.85% to trade at $105,625.73. The price action showed a clear rejection from the 24-hour high of $107,709.04, with bears pushing the price down to a low of $105,329.35. This breach of support suggests that further downside could be tested if bearish momentum continues. The selling pressure was even more pronounced in the altcoin market, a classic sign of traders moving away from higher-risk assets. Ethereum (ETH) saw its ETH/USDT pair drop a significant 4.47% to $2,406.34, breaking below its 24-hour low of $2,397.75 momentarily. Other major altcoins suffered heavier losses, with Solana (SOL) plunging 7.05% to $146.14 and XRP tumbling 6.15% to $2.1586. The ETH/BTC pair also reflected this weakness, declining 1.32% to 0.02303, indicating that capital was rotating out of Ethereum and into the relative safety of Bitcoin, even as BTC itself was declining.



Macroeconomic Jitters and Geopolitical Tensions Weigh on Crypto


The crypto market's downturn did not occur in a vacuum. It mirrored a nervous start for risk assets globally, driven by renewed geopolitical and economic concerns. President Trump's threats of new trade tariffs and escalating tensions surrounding Iran's nuclear program injected fear into the markets. The President's remarks about a potential conflict in the Middle East, specifically involving Israel and Iran, created a backdrop of instability that typically benefits safe-haven assets over speculative ones like cryptocurrencies. While U.S. equities managed to pare early losses and close slightly higher, the digital asset class remained under pressure, highlighting its sensitivity to global risk sentiment. This divergence suggests that crypto traders are currently more reactive to macro threats than their counterparts in traditional finance. The immediate trading focus will be on whether Bitcoin can reclaim the $106,000 level or if it will test lower supports near the $105,000 mark.



Despite the bearish short-term picture, some underlying economic data points could offer a glimmer of hope for a future market reversal. The Federal Reserve has maintained a hawkish stance, but weakening economic indicators may eventually force a policy pivot. On Thursday, the May Producer Price Index (PPI) came in softer than anticipated, and initial jobless claims remained elevated at 248,000, matching a multi-month high. Furthermore, continuing jobless claims rose for the third straight week to 1.956 million, the highest since November 2021. This data suggests a cooling economy, which could lead the Fed to consider interest rate cuts sooner than planned—a traditionally bullish catalyst for risk assets like Bitcoin. President Trump continued his public pressure on Fed Chair Jerome Powell to adopt a more dovish policy. This creates a complex dynamic for traders, who must balance the immediate bearish pressures from geopolitics and regulatory uncertainty against the potential for a future bullish shift in monetary policy.

Evan

@StockMKTNewz

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