Cryptocurrency Market Surges as Senate Prepares Key Regulations

Leading cryptocurrencies experienced a significant uptick on Tuesday, with many investors excited ahead of the Senate’s markup of a crucial bill targeting the regulation of the cryptocurrency market. This bill aims to provide a clearer legal framework for blockchain technologies and define the status of various cryptocurrencies in relation to traditional financial systems, fostering an environment of legitimacy and trust in digital assets.

Crypto Market Rebounds

Bitcoin, the flagship cryptocurrency, skyrocketed to over $96,000—a higher price point not seen in nearly two months. This surge coincided with a notable 45% rise in trading volume over the last 24 hours, indicating strong market enthusiasm. In fact, Bitcoin is up an impressive 9.29% in 2026, sparking optimism among traders and investors alike.

Ethereum is also riding this wave, achieving a two-month peak of $3,350. Similarly, both XRP and Dogecoin experienced notable spikes, pointing to a wider rally across the cryptocurrency spectrum. The overall market sentiment has shifted positively, possibly due to the news surrounding the Senate bill.

The rally is fueled by the Senate Banking Committee’s release of a draft for the cryptocurrency market structure bill, which portrays altcoins similarly to Bitcoin and Ethereum. The committee is set to deliberate the bill on Thursday, potentially signaling a pivotal moment for regulatory clarity in the industry.

As a result of these developments, shares of cryptocurrency-linked companies also saw gains. Notably, shares of Strategy Inc. (NASDAQ: MSTR) closed up 6.63%, while Coinbase Global Inc. (NASDAQ: COIN) rose 4%, showcasing increased investor confidence in cryptocurrency exchanges.

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In a striking statistic, nearly $680 million was liquidated from the cryptocurrency market within a single day, indicating high volatility. Of this, $592 million came from bearish short positions. Additionally, Bitcoin’s open interest saw a 6.65% surge, with over half of derivatives traders now placing long bets on the leading cryptocurrency.

Market sentiment has notably shifted, moving from “Fear” to “Neutral,” as reflected in the Crypto Fear & Greed Index. This change in perception typically signals increased bullish sentiment among traders.

Top Gainers in the Last 24 Hours

The global cryptocurrency market capitalization ballooned to $3.25 trillion, reflecting a robust 4.67% uptick over the previous 24 hours.

Stocks Take a Different Trend

In contrast to the cryptocurrency market’s growth, stocks pulled back from record highs on Tuesday. The Dow Jones Industrial Average fell 398.21 points, or 0.8%, closing at 49,191.99. The S&P 500 dipped 0.19% to settle at 6,963.74, while the tech-focused Nasdaq Composite lost 0.1% to finish at 23,709.8.

Economic indicators showed that December’s Consumer Price Index rose 2.7% year over year, aligning with analyst expectations. Month-over-month data showed a 0.3% rise, also meeting forecasts.

Oil prices surged along with heightened geopolitical tensions, particularly following President Donald Trump’s comment to Iranian protesters that “help is on its way,” driving U.S. West Texas Intermediate beyond $61 a barrel.

Shares of defense companies were not immune to these market shifts, with Lockheed Martin Corp. (NYSE: LMT) and Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) closing down 4.34% and 13.78%, respectively, amid discussions around increasing the military budget significantly.

Is a Bull Market on the Horizon?

Michaël van de Poppe, a prominent cryptocurrency analyst, observed Bitcoin’s breakout above the critical 21-day moving average and its re-establishment of this level as support. He expressed a bullish outlook, saying, “It’s quite clear that this is going to run to $100,000 in the coming week and that dips are for buying.” This sentiment reflects a belief that the bull market is not over; rather, it is about to kick off.

Concurrently, fellow analyst Ali Martinez speculated that if Bitcoin crosses $94,555, it could set the stage for a move toward $105,921. With Bitcoin currently above this threshold, the cryptocurrency community eagerly awaits to see if Martinez’s target will materialize.

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