Bitcoin Holds Above $77,000 After Regulatory Optimism Drives Rebound

Bitcoin (COIN:BTCUSD) traded higher on Monday, holding on to much of its recent recovery as expectations for more favourable U.S. cryptocurrency regulation and looser financial conditions supported demand for digital assets.

Bitcoin gained 1.3% to $77,091.1 by 01:47 ET (05:47 GMT), after having climbed above $79,000 during its recent rebound.

The wider cryptocurrency market also advanced, although several major tokens eased from highs reached over the weekend. Geopolitical uncertainty surrounding Iran remained a source of caution as the U.S. prepared to announce its toughest sanctions yet against Tehran.

Clarity Act Hopes Help Bitcoin Recover Towards $80,000

Bitcoin's latest rally gathered momentum after U.S. President Donald Trump last week urged policymakers to approve what he considers a fair version of the Clarity Act.

The legislation, which has been stalled in Congress for more than a year, is intended to establish a clearer regulatory framework for the U.S. cryptocurrency industry and has been closely followed by companies and investors across the sector.

Progress has been delayed by disagreements over important elements of the proposed rules, including whether different cryptocurrencies should be classified as securities or commodities and how yield payments on stablecoins should be treated.