Crypto Bull Run Forming as 9 Major Forces Align, Bitwise Says

The U.S. Senate is working to pass a crypto market structure bill, which would establish clear regulations for the crypto and blockchain fintech sector. This legislation aims to provide a framework that supports innovation while protecting consumers. Advocates argue that such a bill is essential to making the U.S. the global leader in digital assets.

A recent bipartisan bill passed in the House has set a precedent for the Senate, but key provisions still require negotiation between lawmakers and the crypto industry. U.S. Treasury Secretary Janet Yellen has emphasized the importance of enacting the bill, saying the digital asset revolution is already underway.

Meanwhile, crypto industry leaders have criticized Democrats for a tweet that mocked market losses, calling it insensitive to investor pain. The tweet featured a chart showing Bitcoin's decline and a reference to President Trump. The backlash was swift, with executives and policy advocates warning that such messaging could alienate crypto supporters.

Why Did This Happen?

The Democratic Party's post was seen as partisan gloating in a time of financial hardship for many investors. Custodia Bank CEO Caitlin Long responded by saying the tweet overlooked the fact that many Democrats also own crypto. The timing of the post coincided with a significant drop in Bitcoin's price, leading to over $2.6 billion in liquidations.

The tweet reignited tensions between crypto advocates and political figures, particularly as legislation moves toward a final vote. Patrick Witt, Executive Director of the President's Council of Advisors for Digital Assets, called the message inappropriate for the political climate.

How Did Markets React?

Bitcoin and other major cryptocurrencies have been volatile in recent days, with Bitcoin dropping to $64,752 before rebounding. The market saw a three-day inflow of $1.21 billion in assets under management, signaling a potential bottoming out.

Ethereum and XRP also showed signs of recovery, with Ethereum rising above $1,900 and XRP climbing above $1.35. Traders are watching for key resistance levels as they assess whether the rally will hold.

In the altcoin space, new projects like Mutuum Finance have gained traction, raising over $20.4 million in its presale. The project has attracted 19,000 individual holders and is preparing for a mainnet launch at $0.06 per token.

What Are Analysts Watching Next?

The focus remains on the U.S. Senate as it finalizes the crypto bill. Treasury officials have urged lawmakers to resolve outstanding issues related to stablecoin yields and national security concerns. Some industry representatives have been vocal in their opposition to delays, with U.S. Treasury Undersecretary Brian Bessent calling out "nihilists" who resist regulatory clarity.

Meanwhile, political action committees supporting pro-crypto candidates have raised significant funds, with Fairshake accumulating over $190 million in 2025. These funds are expected to influence the 2026 midterms and shape the future of crypto regulation in the U.S.

A Trump-linked crypto project, World Liberty Financial, has also drawn attention after selling $5 million in wrapped Bitcoin via DeFi protocols. The transaction coincided with a 14% drop in its native token, WLFI. The sale has raised questions about the project's financial strategy and regulatory exposure.

As the political and market landscapes continue to shift, the crypto industry is navigating both regulatory uncertainty and growing investor interest. The outcome of the Senate's bill and the broader political climate will play a key role in shaping the future of digital assets in the U.S.