Bitcoin briefly topped $67,000 while crypto stocks surged as progress on the CLARITY Act and signs of capital rotating out of AI trades boosted sentiment, analysts said.
Bitcoin briefly climbed above $67,000 on Tuesday, and Ether traded near $1,950. Crypto-related stocks rallied sharply. Coinbase shares rose 12%. Cipher Digital jumped 17%. American Bitcoin gained 14%.
The gains followed comments from US Treasury Secretary Scott Bessent, who said lawmakers were at the "1-yard line" on the CLARITY Act. The legislation would define the regulatory roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission over digital assets.
Beyond the regulatory push, some analysts pointed to a rotation out of AI stocks as a potential catalyst. FRNT Financial CEO Stephane Ouellette told Bloomberg that with Bitcoin at the top end of its range, the path of least resistance is higher, especially as the AI trade slows and the market becomes more comfortable with interest rate expectations.
AI-related equities have dominated speculative markets over the past year. The Philadelphia Semiconductor Index, a benchmark for chipmakers powering the AI boom, surged roughly 110%. That rally has lost momentum. Last week the SOX index entered a technical bear market after falling more than 20% from its recent high.
The shift follows an extended period when AI largely overshadowed digital assets. Since the launch of ChatGPT in late 2022, much of the market's speculative appetite moved toward AI. Now, with the AI trade cooling, some capital may rotate back into crypto.
Bitcoin mining firms Hut 8 and IREN, both pivoting toward AI services, also gained on Tuesday. Their moves reflect the blurring line between the two sectors.
Bitcoin traded near $66,800 in late afternoon trading.
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