Bitcoin began the week trading flat as escalating political risk in the United States and fresh regulatory developments abroad shifted attention away from the digital asset’s safe haven narrative. The cryptocurrency hovered near the 90400 level after failing to rally alongside gold and silver, both of which posted strong gains amid rising macro uncertainty. Market participants pointed to growing concern after US federal prosecutors opened an investigation tied to Federal Reserve Chair Jerome Powell, an event that added stress to broader financial sentiment. While equities closed higher at the end of last week, futures softened, and bond yields edged up, signaling caution. Bitcoin’s muted response contrasted with traditional hedges, raising questions about its role during periods of institutional and political tension. ETF flows also reflected hesitancy, with net outflows recorded across both spot bitcoin and ether products, reinforcing the view that investors are currently in wait and see mode.
Regulatory developments added another layer of complexity to crypto markets. In Dubai, the Dubai Financial Services Authority implemented sweeping changes to its crypto framework within the Dubai International Financial Centre, removing its recognized token list and shifting responsibility for asset suitability directly onto licensed firms. The updated rules also tightened the definition of fiat backed stablecoins and banned privacy tokens from regulated activity, underscoring the global push toward stricter compliance standards. In the United States, lawmakers continued to advance work on digital asset market structure legislation, even as debate intensified over stablecoin rewards and oversight. Together, these moves highlight how regulatory clarity is advancing unevenly across jurisdictions, creating both opportunities and friction for market participants navigating cross border crypto exposure.
Despite near term uncertainty, underlying network and market indicators remained broadly stable. Bitcoin dominance held near 59 percent, hashrate stayed close to record highs, and funding rates suggested limited leverage buildup. Ether traded modestly higher, supported by ongoing staking participation, while broader crypto equities saw mixed performance. Analysts noted that bitcoin’s inability to rally during a macro risk event does not necessarily signal structural weakness, but it does reflect how the asset is increasingly treated as part of the risk spectrum rather than a pure hedge. With no major economic data scheduled and political developments dominating headlines, traders are closely watching whether regulatory progress and institutional positioning can reassert influence. For now, bitcoin appears caught between its long term store of value narrative and the realities of a market shaped by policy, liquidity, and global regulation.
