Crypto Market Volatile as U.S. House Halts Regulations Bitcoin Drops 3%

The cryptocurrency market has experienced heightened volatility this week, exacerbated by unexpected legislative actions and economic commentary. The U.S. House of Representatives abruptly halted discussions on cryptocurrency proposals, which has complicated the narrative around Trump’s call for a “HAPPY CRYPTOCURRENCY WEEK.” This legislative roadblock has introduced uncertainty, as a vote on crypto regulations now appears less imminent, undermining recent optimistic forecasts.

Bitcoin, the leading cryptocurrency, has seen significant price fluctuations, with its value hovering around $116,000 after a nearly 3% daily loss. The legislative impasse in the U.S. House has added to the market's instability, with supporters of cryptocurrency regulations expressing concern. Trump has been actively engaging with lawmakers to address the situation, but the outcome remains uncertain. Bitcoin’s critical support level is at $115,500, and market participants are closely monitoring news that could further impact its price. Ethereum, another major cryptocurrency, has pulled back from its $3,100 mark, with investors adopting a cautious stance.

In parallel, Federal Reserve official Collins provided insights into the current economic landscape, emphasizing the impact of tariffs on inflation and interest rates. Collins noted that the robust economic conditions provide the Fed with the flexibility to deliberate on interest rate decisions. However, the policy-setting process remains challenging due to prevailing uncertainties. The Fed is expected to maintain a patient approach to monetary policy, as tariffs are anticipated to drive inflation higher in the latter half of 2025, with core inflation nearing 3% by year-end. While tariffs may impede job growth, profit margins are expected to cushion the economy against sustained pressures.

These developments in legislation and economic policy are likely to continue fueling uncertainty in the cryptocurrency market. Investors are closely watching for further developments that could influence market dynamics and shape future industry trends. The evolving regulatory environment and economic commentary are expected to play a significant role in determining the direction of the crypto market in the coming weeks.