New York, March 5, 2026, 12:54 (EST) — Regular session
- Bitcoin slipped toward $71,000, giving back gains from its sharp rally just the day before.
- Traders held back, watching Washington’s Clarity Act discussions grind to a halt, while Middle East risks sent fresh jolts through the market.
- Next up: Friday’s U.S. jobs numbers—investors watching for any rate signal.
Bitcoin slipped Thursday, erasing some of its sharp midweek recovery as the dollar strengthened and traders weighed the likelihood of imminent U.S. crypto rules. The top cryptocurrency dropped roughly 3.5% to $70,764, off a session peak of almost $73,984.
Bitcoin pulled back just a day after jumping 7.64% to $73,245, buoyed by appetite for risk across markets as oil steadied and equities gained ground. “You combine all of those and it equates to a market that’s feeling further emboldened,” said Michael James, equity sales trader at Rosenblatt Securities. Reuters
Policy headlines are carrying extra weight. Negotiations over the Clarity Act—a measure aimed at clarifying regulations for crypto companies—stalled yet again after banks pushed back against a White House proposal on stablecoin rewards, according to sources who spoke with Reuters. President Donald Trump accused the banks of working to “undermine” his crypto agenda. Stifel’s Brian Gardner put it bluntly: “the calendar is becoming the enemy of this bill.” Reuters
Macro jitters crept in once more. The dollar pushed higher as fighting escalated in the Middle East, prompting a rush into safe-haven assets. Bitcoin and ether gave up their recent gains. “This week we see when we have heightened volatility and heightened risk, the dollar certainly rallies,” said Elisabeth Colleran, co-head of emerging markets debt at Loomis Sayles. Reuters
The day before, market sentiment pointed in the opposite direction. Bitcoin surged to $74,000, according to Investopedia, as Trump threw his weight behind the Clarity Act and traders looked for any indication February’s downturn was letting up. “This is likely a rally to rent rather than own,” wrote Sean Farrell, who leads digital asset strategy at Fundstrat. Investopedia
Traditional market infrastructure is making its way into crypto at breakneck speed, shown by a separate deal even as lawmakers remain at odds over regulation. Intercontinental Exchange, which owns the NYSE, has snapped up a minority stake in OKX—giving the crypto exchange a $25 billion valuation, according to Reuters. ICE also aims to roll out U.S.-regulated futures and license OKX spot crypto prices. “There was a time window to get Clarity done,” OKX global managing partner Haider Rafique told Reuters, adding he’d rather not wait “six years” for regulatory movement. Reuters
Ether slipped roughly 4.2% to $2,059.76, pulling back after briefly topping $2,190 earlier.
Spot bitcoin ETFs, which allow investors to get bitcoin exposure via brokerage accounts, are still driving much of the action. Over just the past two days, U.S. spot bitcoin ETFs took in upwards of $680 million, Bloomberg data shows.
Rates stayed in focus for traders, with a Reuters market summary highlighting solid U.S. private payrolls and an upbeat services reading. Investors looked ahead to Thursday’s jobless claims and Friday’s nonfarm payrolls, even as the ongoing Middle East war continued to dominate sentiment across markets.
The path isn’t one-directional. If oil spikes again or the dollar takes off, risk trades could feel pressure. Any drawn-out delays with the Clarity Act would challenge the “policy tailwind” narrative that’s been behind this week’s move higher. A decisive drop under $70,000 shifts attention back to the question of whether the rally was simply a short-covering pop.
Friday’s U.S. Employment Situation report hits at 8:30 a.m. ET, lining up as the next big catalyst that could jolt rate expectations—and ripple through crypto risk appetite.
