Bitcoin fell short of its previous record on Tuesday, retreating from intraday gains as investors digested strong institutional interest and awaited further regulatory guidance for decentralized finance (DeFi) platforms.
The world’s largest cryptocurrency rose as much as 1.7% to $110,572 before paring gains and trading little changed in late trading. The move came as the digital asset approached its all-time high of $111,980 reached on May 22 but failed to break through resistance amid cautious sentiment and profit-taking.
Bitcoin has advanced approximately 16% year-to-date, underpinned by mounting institutional inflows, renewed interest in crypto-aligned financial products, and favorable regulatory rhetoric from U.S. policymakers. Analysts said momentum remains strong, but markets may pause ahead of critical policy announcements and further macroeconomic data.
“There’s a drumbeat of announcements from sovereigns, Bitcoin treasury companies, and other institutions that they are taking notice of it,” said Eric Jackson, founder and president of Emj Capital Ltd. “That’s all combining for the interest in Bitcoin.”
Ether, the second-largest cryptocurrency by market capitalization, outperformed Bitcoin on the day, climbing as much as 8.3% following comments from SEC Chairman Paul Atkins. During a Crypto Task Force Roundtable, Atkins indicated that developers working on DeFi protocols may no longer be subject to existing federal securities laws, even in instances where code is misused by malicious actors.
“We should not automatically fear the future,” Atkins stated. “Century-old regulatory frameworks should not stifle innovation in technologies that can upend and improve our current models.”
His remarks were interpreted as a significant shift toward regulatory leniency for blockchain-based finance, a sector long weighed down by legal uncertainty. Atkins also confirmed the SEC would explore additional guidance to support DeFi users and developers in aligning with applicable laws.
The regulatory shift coincided with robust demand for crypto-related equities. Circle Internet Group Inc., the operator of the USDC stablecoin, saw its initial public offering oversubscribed last week. The stock surged from its IPO price of $31 to $107 in its first week of trading, reinforcing investor appetite for digital asset firms.
“Robust institutional demand is driving sentiment, fueled by Circle’s highly oversubscribed IPO,” said Jake Ostrovskis, OTC trader at Wintermute. “Meanwhile, BlackRock’s IBIT ETF reached $70 billion in assets under management, the fastest ETF to hit that milestone. These narratives are pushing spot toward all-time highs.”
Bitcoin’s consolidation near record territory reflects cautious optimism. While the asset continues to attract large-scale institutional flows, including from treasuries and hedge funds mimicking Michael Saylor’s MicroStrategy model, market participants are closely monitoring macro conditions, U.S. monetary policy, and the evolution of crypto-related legislation.
Michael Saylor, Executive Chairman of MicroStrategy, reiterated his long-term bullish stance during a Bloomberg TV interview on Tuesday. “Winter’s not coming back — we’re past that phase. Bitcoin’s not going to zero; it’s going to a million dollars,” he said.
Stablecoin regulation is also on the radar as lawmakers move to formalize the sector’s role in the broader financial system. Proposed legislation could assign oversight of stablecoin issuers to federal and state regulators, a move some believe will legitimize and stabilize the market.
“All of these regulations are going to help the price of crypto longer-term,” Jackson added.
Despite Bitcoin’s inability to surpass its May high, analysts believe the structural momentum remains intact. The combination of institutional adoption, regulatory clarity, and product innovation continues to support the asset class’s growth trajectory.
Markets will now turn attention to the Federal Reserve’s upcoming policy decisions, additional DeFi regulatory updates, and corporate disclosures from key players in the digital asset space for further direction.
