Bitcoin News Today: Bitcoin Stagnates as Altcoins Surge 6%–11% Amid U.S. Crypto Regulatory Shifts

The cryptocurrency market experienced significant regulatory developments in the U.S. over the past week, with Bitcoin showing muted movement while altcoins surged. Amid heightened volatility, Bitcoin initially corrected sharply to around $112,000 on August 2 before attempting a recovery that saw it briefly surpass $115,000. However, persistent selling pressure pushed the price back below $113,000 before stabilizing above $114,000. This stabilization coincided with the first major news of the week: U.S. President Donald Trump signed an executive order allowing Americans to include Bitcoin and other digital assets in their 401(k) retirement plans. The policy aims to expand investment freedom by reducing government control over retirement assets, highlighting the potential for higher returns through alternative investments [1].

The regulatory environment further evolved as Ripple and the U.S. Securities and Exchange Commission (SEC) filed a joint stipulation seeking to dismiss all appeals, effectively concluding their over five-year legal battle. This resolution brought clarity to the ongoing debate about whether crypto assets should be classified as securities or commodities. The outcome has significant implications for the broader crypto market, particularly for projects caught in similar regulatory gray areas. The case largely unfolded under the previous administration, where former SEC Chairman Gary Gensler favored enforcement-based regulation [1].

Following these developments, altcoins experienced notable gains. Ethereum climbed 9%, nearing $4,000, while XRP rose approximately 6%. Cardano’s ADA and Stellar’s XLM both posted double-digit increases, with ADA up 9.6% and XLM up 11%. These performances contrasted with Bitcoin’s flat movement, which closed the week at $115,977, up slightly by 0.5%. The overall market cap stood at $3.92 trillion, with 24-hour trading volume reaching $154 billion and Bitcoin’s dominance at 58.8% [1].

Bitcoin miners also demonstrated resilience during the week, with prices rising 7.4% from the last difficulty adjustment low, showing no signs of capitulation despite ongoing market uncertainty. Meanwhile, Arthur Hayes, co-founder and former CEO of BitMEX, made a bold prediction of Bitcoin reaching $250,000, citing anticipated U.S. monetary expansion [1].

The week also saw the conviction of Tornado Cash developer Roman Storm on charges of operating an unlicensed money transmission business, though he was acquitted of other charges including conspiracy to commit money laundering. In the Ethereum ecosystem, Vitalik Buterin and Anders Elowsson proposed EIP-7999, a fee overhaul aimed at streamlining the network’s cost structure by unifying multiple resource costs under a single maximum fee [1].

As the U.S. regulatory landscape continues to evolve, investors are watching closely to see whether Bitcoin will regain momentum or if altcoins will continue outpacing it. The market appears to be entering a new phase of regulatory clarity, potentially opening doors for broader institutional adoption and investment in digital assets [1].

Source:

[1] Bitcoin Stagnates, Altcoins Thrive on Major Regulatory Developments in the US: This Week’s Crypto Recap (https://coinmarketcap.com/community/articles/6896214da840d21b6b5882f9/)