Bitcoin rose on Thursday, extending its recent recovery as markets assessed a proposed US bill aimed at establishing a regulatory framework for the cryptocurrency sector.

The world’s largest digital currency resumed gains after a slow start to the year, following a disclosure by Strategy, the largest institutional holder of Bitcoin, of a major purchase this week. However, Bitcoin remained below the key psychological level of $100,000, as pressure on risk appetite toward digital assets persisted.

Bitcoin rose 1.4% to $96,370.1 by 00:05 US East Coast time (05:05 GMT), marking its strongest level in two months.

US Senate delays cryptocurrency bill after Coinbase opposition

The US Senate Banking Committee said on Wednesday that it had postponed discussions on a proposed bill to regulate cryptocurrencies, just hours after Brian Armstrong, Chief Executive Officer of Coinbase Global, voiced opposition to the measure.

Senator Tim Scott said in a post on social media that the discussion of the bill, which had been scheduled for Thursday, was delayed.

In an earlier post on Wednesday, Armstrong criticized the bill, saying Coinbase could not support it in its current form.

Armstrong took issue with several provisions in the proposal, including a suggested ban on tokenized equities, restrictions on decentralized finance, a reduction in the oversight role of the Commodity Futures Trading Commission, as well as “draft amendments that would eliminate stablecoin rewards.”

Armstrong said: “This version is far worse than the status quo. We would rather have no law at all than pass a bad law,” criticizing the bill despite its bipartisan backing.

Coinbase was among the largest donors during the 2024 US election cycle to crypto-supportive entities, and is a key party in negotiations surrounding the bill, given that it is the largest cryptocurrency trading platform in the United States.

The cryptocurrency industry has long called for a comprehensive regulatory framework, seeking clarity on whether digital assets should be classified as securities or commodities.

Cryptocurrency prices today: altcoins lag as risk appetite remains weak

Other cryptocurrency prices lagged Bitcoin’s gains and remained under pressure amid continued weakness in overall market risk appetite.

Global geopolitical tensions remain elevated, as investors watch for any potential additional US intervention in Venezuela and Iran.

Despite Bitcoin’s recovery, it continued to trade at a discount in US markets, particularly on Coinbase, compared with global averages. This trend, which has persisted since mid-December, points to continued weakness in retail investor demand.

Among altcoins, Ether, the world’s second-largest cryptocurrency, fell 0.6% to $3,312.22. XRP declined by 2.4%, while BNB slipped by 0.5%.

Oil prices fell by more than 3% on Thursday after US President Donald Trump said that the killing of protesters during demonstrations in Iran had begun to subside, easing concerns about potential military action against Iran and the risk of disruptions to oil supplies.

Brent crude futures dropped by $2.19, or 3.3%, to $64.33 a barrel by 12:21 GMT. US West Texas Intermediate crude also fell by $2.06, or 3.3%, to $59.96 a barrel, after having lost as much as 4.6% earlier in the session.

Trump said he had been informed that killings linked to the crackdown on protests in Iran had started to decline, and that he believed there were currently no plans for mass executions, adopting a “wait-and-see” stance after previously hinting at the possibility of intervention.

Analysts noted that these remarks reduced the risk premium that had built up in markets over recent days. Brent crude had reached $66.82 a barrel on Wednesday, its highest level since September.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said: “While the situation remains fragile, the immediate risk premium has eased, but it is unlikely to disappear completely given the ongoing risk of supply disruptions.”

In a related development, a US official said on Wednesday that the United States had begun withdrawing some of its personnel from military bases in the Middle East, after a senior Iranian official said Tehran had informed neighboring countries that it would target US bases if Washington launched an attack.

Prices also came under further pressure after data from the US Energy Information Administration showed that US crude oil and gasoline inventories rose by more than expected last week.

In another development, three sources said Venezuela has begun rolling back oil production cuts it had imposed under US sanctions, as crude exports resumed.

On the demand side, the OPEC said on Wednesday that oil demand in 2027 is likely to rise at a pace similar to this year, and published data indicating that supply and demand are nearing balance in 2026, in contrast to other forecasts that point to a supply surplus.

Government data showed that China’s crude oil imports rose by 17% year on year in December, while total imports in 2025 increased by 4.4%, with average daily oil imports reaching record levels.

The British pound edged slightly lower against the dollar on Thursday before trimming some of its losses, after economic data showed that the UK economy grew more strongly than expected in November. However, the data had little impact on monetary policy expectations.

Market participants have priced in interest rate cuts by the Bank of England totaling around 40 basis points by next September.

UK gross domestic product recorded its fastest pace of growth since June, supported by Jaguar Land Rover returning to full production capacity following a cyberattack that had affected the carmaker and its supply chains.

Callum Pickering, Chief Economist at Peel Hunt, said: “Despite the positive surprise, it is important to note that the data are not strong by any means.”

He added: “Economic activity in the UK is, at best, lukewarm and volatile, and remains largely constrained by weak confidence in the policy decisions taken by the Labour government.”

The pound fell by 0.05% to $1.3443, after having been down about 0.10% before the data were released.

Meanwhile, the dollar rose as markets looked past concerns over the independence of the Federal Reserve and shifted their focus back toward economic data.

Andrew Wishart, an economist at Berenberg, said: “The broader picture still points to the UK economy having lost momentum since the summer.”

He added: “We expect this weak phase to persist into 2026 amid ongoing job losses and fiscal tightening,” noting that this backdrop could help bring inflation down and allow the Bank of England to cut interest rates more aggressively than markets currently expect.

Analysts said investors have begun to refocus on economic data after the support the pound had recently received from easing financial and political risks in the UK faded — factors that had bolstered the currency following Chancellor Rachel Reeves’ November budget announcement.

The next batch of UK consumer price inflation data is due to be released on January 21.

At the same time, the euro rose by 0.15% to 86.54 pence.

The release of China’s full-year 2025 trade data on Wednesday highlighted a sensitive issue for the UK — the risk of the British market being flooded with Chinese goods originally destined for the US market.

The data showed that Chinese goods exports to the UK rose by 7.8% year on year in 2025, while exports to the European Union increased by 8.4%.

Gold prices retreated in European trading on Thursday, giving up their record highs, amid active corrective moves and profit-taking, as safe-haven demand for the metal slowed after US President Donald Trump adopted a cautious stance toward the protests in Iran.

Prices were also pressured by a stronger US dollar ahead of the release of key US labor market data, which are expected to provide further clues about the Federal Reserve’s interest rate path over the course of this year.

Price Overview

• Gold prices today: Gold fell by around 1.0% to $4,581.33, from an opening level of $4,627.35, after touching an intraday high of $4,632.73.

• At Wednesday’s settlement, the precious metal gained 0.9% and recorded an all-time high at $4,643.02 per ounce.

US Dollar

The US dollar index rose by 0.15% on Thursday, resuming gains that had briefly paused in the previous session, and moved closer to a four-week high, reflecting broad strength in the US currency against a basket of major and minor currencies.

US President Donald Trump said on Wednesday that he does not intend to dismiss Federal Reserve Chair Jerome Powell, despite the criminal investigation being conducted by the Department of Justice, adding, however, that it was “too early” to determine what he would ultimately do.

US Interest Rates

• Trump welcomed the inflation data released this week and renewed his call for Federal Reserve Chair Jerome Powell to cut interest rates “substantially.”

• According to the CME FedWatch tool, the probability of leaving US interest rates unchanged at the January 2026 meeting currently stands at 95%, while the probability of a 25-basis-point rate cut is priced at 5%.

• Investors are currently pricing in two US rate cuts over the course of next year, while Federal Reserve projections point to a single 25-basis-point cut.

• To reassess these expectations, investors are awaiting the release later today of additional key US data, including weekly jobless claims.

Gold Outlook

Market strategist Ilya Spivak said: We are seeing a modest pullback in gold prices today after Trump said the US may not intervene in Iran, which curbed safe-haven demand, but the broader story supporting higher prices remains intact.

SPDR Fund

Gold holdings at the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, were unchanged on Wednesday, keeping total holdings at 1,074.23 metric tons, the highest level since June 17, 2022.