US Inflation Data Boosts Bitcoin Sentiment as Regulatory Clarity Looms

Bitcoin prices have recovered after softer-than-expected US inflation data boosted market sentiment. The cryptocurrency climbed back towards $65,000 as investors' risk appetite improved. According to Nagham Hassan, Market Analyst at eToro, 'cooler US inflation figures eased pressure on financial markets and revived expectations that the macro environment could become more supportive for risk assets.'

The upcoming US House Financial Services subcommittee hearing on the Clarity Act has shifted investors' attention. The proposed legislation aims to establish clearer regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for digital assets.

Hassan stated that markets have been expecting greater regulatory clarity in the US to support broader institutional participation in crypto. However, uncertainty around the Clarity Act's progress could influence investor sentiment in the weeks ahead.