Bitcoin stabilized on Monday, giving up most of the weekend's gains as tensions over Iran escalated,
dampening optimism about progress in shaping the U.S. regulatory framework for cryptocurrencies.
The world's largest cryptocurrency rose 0.2% to $80,833.9. It rose to $82,000 over the weekend, but lost most of those gains by Monday.
Market sentiment was also tempered by investor caution ahead of the release of key US consumer price index (inflation) data this week, as well as pending high-level talks between the US and China.
Tensions between the US and Iran rise as peace talks stall
Tensions between the United States and Iran increased over the weekend, especially after President Donald Trump largely rejected Tehran's response to a 14-point peace proposal.
Trump called Tehran's response "totally unacceptable." Iran rejected US calls to dismantle its nuclear infrastructure and demanded only a short suspension of uranium enrichment.
Iran has laid out a plan to end the war and gradually restore commercial shipping through the Strait of Hormuz. Tehran also demanded that the US lift its naval blockade of the country before negotiations on the nuclear deal begin.
Events over the weekend indicate that de-escalation of the conflict with Iran is unlikely anytime soon. Separately, Israeli Prime Minister Benjamin Netanyahu said that the war is not over and admitted the possibility of new military action against Iran.
The US Senate is preparing to consider the Clarity Act
US senators are preparing to meet to consider the long-delayed Clarity Act, which would establish a regulatory framework for cryptocurrencies.
The Senate Banking Committee has scheduled a key hearing on finalizing the bill for 2:05 p.m., with the goal of moving the document toward passage.
Lawmakers are reportedly close to a compromise on the long-stalled issue of stablecoin returns: The bill would ban bank-deposit-style passive income but allow rewards associated with active transactions and staking—a move that caters to the interests of both crypto industry and banking lobbyists.
If approved by the committee, the bill will come to a vote of the full Senate in early June. The Clarity Act aims to create a broad regulatory framework for cryptocurrencies, which will give the industry greater legitimacy in US markets.
Crypto market today: altcoins hold amid uncertainty around Iran and regulation
On Monday, the cryptocurrency market as a whole showed growth, but a more significant rise was hampered by the uncertainty surrounding the Iranian conflict and the Clarity Act.
Ether, the world's second-largest cryptocurrency, rose 0.4% to $2,337.56, while XRP added 2.8% to $1.4580.
BNB, Solana and Cardano rose between 0.7% and 3.6%.
Among memecoins, Dogecoin rose 1.3%, while $TRUMP fell 0.3%.