Here’s a breakdown of the crypto market from last week:
Market Rally Continues Despite Cancelled Crypto Bill 📈
So, Coinbase pulled back its support for a proposed US crypto bill (Clarity Act), saying some parts could slow down industry innovation. That immediately brought back a familiar feeling, as traders felt “Here we go again.” Regulatory clarity is delayed, and the new timeline is unclear. Also, the December Consumer Price Index (CPI) landed around 2.7% YoY and 0.3% MoM. Things were pretty much unchanged, and the CPI data helped settle inflation worries and kept the possibility of an interest rate cut alive.
As expected, the market blinked a little. Crypto prices wobbled as traders took a moment to rethink the situation. But the wobble didn’t last. There was no panic, no rush for the exit. Bitcoin and major altcoins steadied themselves and kept moving higher. Bitcoin pushed above $97,000 — its highest level in months — before settling around $95,000. Ethereum also climbed past $3,300, and Solana moved above $140. The simple message was that the market heard the headline and chose not to panic.
Part of that support is purely macro. Inflation data has calmed down a bit, and there’s growing belief that interest rates could ease later in the year. When things like these happen, risk assets like crypto usually breathe easier. Ultimately, that reaction matters. It suggests regulatory noise still matters, but it’s no longer enough to knock the market off its feet, especially when macro conditions are still playing nice.
Even Crypto Stocks Aren’t Left Behind
It wasn’t just crypto moving. Crypto-linked stocks like Coinbase (COIN) and Strategy (MSTR) followed Bitcoin higher, indicating growing confidence among investors that crypto-related equities could benefit from broader price movement in the crypto industry.
Put it all together, and the setup starts to make sense, with steadier macro conditions, renewed institutional interest, and the possibility of better regulation down the line. These are enough for some strategists to think this run is far from over.
However, prices are still below all-time highs, so nobody’s claiming victory yet. But sentiment has clearly shifted; the market feels more comfortable again, less jumpy, and a lot less reactive to every policy headline. For now, macro is driving. Regulation can catch up later.
What the Market Is Watching Next
With the regulatory headline now cooled off, attention shifts back to macro this week. The data points that could shape the next move will be the US Core PCE inflation, which is the Federal Reserve’s preferred inflation gauge.
CPI opened the door already, but PCE is what policymakers watch most closely. A softer print would support risk appetite and help crypto hold its ground. A hotter number could put pressure on Bitcoin, especially around current support levels.
Other key details to watch include:
- US GDP (Q4): A quick check on how the economy actually ended the year, which helps set the market mood.
- U.S. Flash PMIs (Manufacturing & Services): An early signal on business activity to know if things are slowing down or still holding up.
- U.S. Consumer Sentiment: A look at how confident people feel about spending, which often spills into risk appetite.
Ultimately, how the next data lands will likely decide whether the rally will continue or take a break.
Disclaimer: This content may cause extreme FOMO (Fear of Missing Out). Side effects of investing include sudden wealth (or, you know, the opposite 😢). Please do your own research (DYOR) or speak to your financial advisor before making any decisions.
