Bitcoin and broader crypto prices remained in a tight trading range amid growing uncertainty over the U.S.-Iran war
Bitcoin rose marginally on Tuesday as cryptocurrency markets remained under pressure amid continued U.S.-Iran tensions and a rout in U.S. Treasury bonds driven by worries over inflation and debt.
Caution before a top-level U.S. regulatory meeting also weighed on crypto markets.
Bitcoin was last up 0.4% to $64,617.4 by 21:25 GMT.
Bitcoin and broader crypto prices remained in a tight trading range amid growing uncertainty over the U.S.-Iran war and a U.S. bond sell-off, especially in longer-end maturities, that spilled over into international fixed-income markets.
The bond sell-off has come despite benign U.S. consumer and producer price reports last week. Inflationary jitters from rising oil prices due to an impasse between Washington and Tehran have countered the soft data, while massive bond offerings from mega-tech firms to fund artificial intelligence infrastructure buildouts have compounded debt worries.
Longer-end Treasury yields have been under more pressure than shorter maturities, as their extended timeline makes them more susceptible to changes in interest rates. The U.S. 30-year yield on Tuesday hit a session high of 5.335%, its highest level since June 2007. The instrument had pared gains since and eventually closed lower by 2.5 basis points at 5.285%.
In a notable development, the SEC on Tuesday proposed new rules aimed at creating a tailored framework for certain investment contracts involving crypto assets, as the regulator seeks to provide clearer pathways for companies to raise capital while maintaining investor protections.
The proposal, dubbed “Regulation Crypto Assets,” would establish two exemptions from securities registration requirements. One would allow eligible issuers to raise up to $5 million over a four-year period, while the other would permit offerings of up to $75 million in any 12-month period.
Regulation Crypto Assets seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws, SEC Chairman Paul Atkins said in a statement.
In line with the Commission’s earlier interpretative guidance, this proposal would also allow for a safe harbour once an issuer has completed or permanently ceased all essential managerial efforts that it represented or promised it would take under an investment contract, he added.
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