Bitcoin Jumps Past $86,000 Despite Crypto Law Failing in Congress

Bitcoin's price surged past $86,000 this week, ignoring the collapse of a major U.S. crypto law that many in the industry had been waiting for.

Bitcoin (the world's biggest cryptocurrency — a type of digital money that isn't controlled by any government or bank) jumped nearly 7% in a single day. This happened just six days after lawmakers blocked the Clarity Act — a proposed law meant to create clear rules for the crypto industry.

Why did the law fail? The main problem was a conflict of interest. President Trump and his family have launched several crypto businesses, and Trump reported about $1.4 billion in crypto-related income. Many Democrats worried the law would benefit the Trump family too much. Senator Elizabeth Warren warned it "posed a massive risk to families."

Why is Bitcoin still going up? Even without the new law, Bitcoin has been on a strong run. Here are the key numbers:

• Bitcoin recently traded at $86,225
• It's up 10% over the past 30 days
• Investors poured nearly $593 million into Bitcoin ETFs (exchange-traded funds — investment products that let people buy into Bitcoin through the stock market without owning the coins directly) on Thursday and Friday

The rally began in August after the U.S. Treasury said it would double its "buyback" operations — basically pumping more money into financial markets, which often helps risky assets like Bitcoin.

What about interest rates? The Federal Reserve (the U.S. central bank that sets the country's interest rates) raised rates last week, but Bitcoin barely reacted. Historically, Bitcoin has done well when interest rates are low.

The bottom line: Even though the crypto law didn't pass, financial regulators like the SEC and CFTC are still working on rules. For now, buyers seem confident, and Bitcoin's price keeps climbing.

This is an AI-generated summary. Read the original article at: https://bitcoinmagazine.com/markets/bitcoin-price-blasts-past-86000