Bitcoin stabilizes near $79,000

Bitcoin remained flat, holding below its recent record highs as the cryptocurrency rally stalled, with markets awaiting further signals on U.S. regulations and the Middle East conflict. The world’s largest digital currency fell 0.3% to $78,676.20. It had reached $82,000 earlier in the week before retreating from some of its gains. The crypto rally was primarily fueled by bond yield declines, as U.S. Treasury Department intervention in bond markets drove flows into higher-risk alternative assets. Markets showed little reaction to U.S. Personal Consumption Expenditures (PCE) price index data, which showed inflation stabilizing in July. However, this indicator, the Federal Reserve’s preferred gauge, remained well above the central bank’s annual 2% target, keeping markets anxious about hawkish expectations. High interest rates have constrained speculative short-selling, with attention now turning to the Federal Reserve’s September meeting for further clues. Markets absorbed excellent earnings and guidance from Nvidia, the AI leader, which could once again attract capital to AI stocks and away from cryptocurrencies—a trend that has dominated for most of the year. Alongside tensions related to Iran, focus remained on regulatory developments in the United States, following President Donald Trump’s call last week for stricter regulations. In this context, CoinDesk reported that the U.S. Securities and Exchange Commission is working on additional regulations for cryptocurrency custody services. The “Clarity Act” lies at the heart of U.S. regulatory uncertainty; while the bill aims to establish a more comprehensive framework for cryptocurrencies, its progress in Congress has largely stalled.