Bitcoin Rebounds From $80,000 as Midterms Put Crypto Rules at Risk
Bitcoin recovered after falling to around $80,000, its lowest level since September 18. Charles Schwab research director Adam Lynch warned that a change in…
Bitcoin’s latest rebound follows a sharp slide that put crypto policy in Washington back in focus. BTC USD recovered after touching around $80,000, while Charles Schwab research director Adam Lynch warned that the midterm elections could halt progress for the industry if political control changes.
The price had fallen to its lowest level since September 18, then rebounded. Lynch said leverage had intensified the recent swings, with traders who entered long positions near $87,000 earlier this month wiped out and the subsequent bounce forcing some short sellers out.
The volatility has not erased political uncertainty. Lynch said crypto’s progress in Washington could “grind to a halt” if the midterms change who holds power, though he remains “somewhat optimistic” about a bipartisan deal.
That debate matters for investors and companies because congressional action on crypto market rules has stalled. The market structure bill failed to pass, according to the source report, leaving regulatory efforts by federal agencies as a separate route toward clearer rules.
BTC USD and the regulatory outlook
Lynch, director of equity research at the Schwab Center for Financial Research, made his comments in an interview with Schwab Network. He described the current administration as “probably the most pro-crypto and crypto-friendly” one so far, but said a change in political power could affect the policy agenda.
Regulators have continued work on their own frameworks, Lynch said. The Commodity Futures Trading Commission began a rulemaking process “about 10 days ago” aimed at a tailored framework for certain crypto transactions. The Securities and Exchange Commission is also working on a broader digital asset framework.
“From the regulatory standpoint, I think we will see progress, and that will hopefully help the market,” Lynch said.
The difference is significant for market participants: legislation has been stuck in Congress, while agency rulemaking is advancing. A shift in Washington could influence how much support those efforts receive, though Lynch said he hoped lawmakers could still reach an agreement.
Charles Schwab expanded access to the asset on Friday, rolling out direct Bitcoin purchases to all eligible retail clients among its 40 million clients. The move brings Bitcoin trading to a large retail customer base, even as market prices and investor attention remain unsettled.
Bitcoin was trading at $81,545, down 0.6% over the previous 24 hours, according to the source report. Stocktwits retail sentiment remained in the “bearish” zone, while discussion stayed at low levels. Platform data showed watchers for Bitcoin had dropped nearly 47% over the past 30 days.
Policy debate runs alongside market swings
Lynch said Bitcoin’s longer-term fundamentals had not changed. He pointed to US Bitcoin exchange-traded products bringing in nearly $60 billion since January 2024. “It’s become a major player,” he said.
He said Ethereum had been hit harder during the month, while Bitcoin had been the better performer. Ethereum was down about 18% so far this year, compared with Bitcoin’s 7% decline, the report said.
Crypto policy also faces opposition in Washington. Senator Elizabeth Warren pressed the Office of the Comptroller of the Currency in May over trust charters granted to crypto firms, including Ripple, Coinbase and Paxos. She had also urged the Federal Reserve and Treasury not to use taxpayer money to rescue crypto investors.
President Donald Trump has pledged to make the United States the “crypto capital of the world.” The source report says he signed an executive order creating a Strategic Bitcoin Reserve and, last year, signed the GENIUS Act, described as the first federal law for stablecoins.
Lynch’s warning centers on whether that political environment will hold after the midterms. For now, Bitcoin has recovered from around $80,000, while its reported price stands at $81,545.
Source: finance.yahoo.com
