Bitcoin faced new volatility and a new struggle to reclaim $80,000 as Iran events added pressure to crypto and risk assets.
Bitcoin held firm near five-week highs despite escalating US-Iran tensions, with US stocks also shrugging off risks. Analysts suggest a potential short squeeze in the S&P 500, while some traders predict Bitcoin will outperform US stocks in the foreseeable future.
The Digital Chamber is suing the State of Illinois over a 0.2% crypto transaction tax set to take effect in 2027, alleging it was 'slipped into the state’s budget' without debate and discriminates against digital asset transactors regardless of gain or ownership transfer.
SEC Commissioner Hester Peirce stated that crypto vaults and onchain lending products, especially those involving discretionary asset management, may fall under US federal securities laws, urging developers to assess compliance.
Galaxy Digital pledged up to $5 million to help Bitcoin prepare for quantum computing threats by funding research, post-quantum signature integration, and migration tools. The decentralized network requires years of coordination for an upgrade.
Foundry USA, the world's largest Bitcoin mining pool, has opened voting for its customers on Bitcoin Improvement Proposal (BIP-110), a soft fork aiming to limit non-monetary transactions like Ordinals. The proposal faces opposition from industry leaders Adam Back and Michael Saylor, who warn of potential user fund freezes and transaction invalidation.
Bitcoin has surpassed $66,000 for the first time since early June, extending its recovery despite thin spot market activity and derivatives traders paying heavily for downside protection. The rally is supported by long-term holders refusing to sell and recovering demand from US spot Bitcoin ETFs, but its sustainability depends on attracting broader spot buyers.
