Bitcoin Reclaims $80,000 as Solana and Hyperliquid Rally, Markets Shrug Off Regulatory Setback

Bitcoin climbed back above $80,000 on Friday morning, gaining more than 5%, as crypto markets ended the week on a strong note. Solana and Hyperliquid each rose about 10%, leading gains among the top 10 cryptocurrencies. The move came even though the Clarity Act stalled in the U.S. Senate.

Crypto markets rise as regulators act without Congress

According to a report by The Block, Bitcoin had been consolidating around $75,000 to $78,000 in recent weeks. The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been moving forward with crypto-related rules despite the legislative setback.

The CFTC filed its crypto asset rulemaking with the White House for review on Friday. The day before, the SEC released an innovation exemption aimed at allowing onchain trading of tokenized stocks. Also this week, a House panel voted to advance a bill that would direct the Treasury Department to maintain a secure Bitcoin storage facility.

Key numbers

• Bitcoin reclaimed $80,000, up more than 5%.
• Solana (SOL) and Hyperliquid (HYPE) each jumped about 10%.
• Hyperliquid hit a new all-time high above $90, trading around $91.60.

What industry figures say

Dan Morehead, founder of Pantera Capital, told CNBC that “the industry doesn't need Congress” because the SEC and CFTC are enacting measures that would have been in the Clarity Act anyway. He also said people remain bullish on Bitcoin because the Federal Reserve is still behind on inflation. Morehead said Pantera is “much more bullish” on Solana than Ethereum, though he believes both are valid and that many important blockchains will emerge.

Kevin O'Leary, entrepreneur and investor, told The Block he is buying new crypto positions and watching for a major stock exchange to adopt blockchain. He said, “I'm back in the saddle buying new positions, putting my bets on for this next cycle.”

Hyperliquid launches borrowing feature

Hyperliquid also launched manual borrowing, allowing users to supply HYPE and Bitcoin as collateral to borrow stablecoins like USDC and USDT. Stablecoins are digital currencies typically pegged to a traditional currency like the U.S. dollar.

JP Morgan analysts note caution

On Thursday, JPMorgan analysts said high short interest and hedging around BlackRock's IBIT ETF show investors are still more cautious on Bitcoin than gold. They added that if hedging eases, it could give Bitcoin more support relative to gold.

What is confirmed

• Bitcoin reclaimed $80,000 and rose more than 5% on Friday morning.
• Solana and Hyperliquid both gained about 10%.
• Hyperliquid hit a new all-time high above $90 and launched manual borrowing.
• The CFTC filed crypto rulemaking with the White House on Friday.
• The SEC released an innovation exemption on Thursday.
• A House panel voted to advance the American Reserve Modernization Act.

What is still unclear

The report does not specify when the Clarity Act might be reconsidered or what exactly replaced it. It also does not provide details on the SEC's innovation exemption or the CFTC's rulemaking beyond general descriptions. The impact of the Fed's rate decisions on crypto prices remains uncertain, as some analysts point to hedging as a factor.

Why it matters

The market's positive reaction suggests traders may be looking past the legislative failure, focusing instead on regulatory actions and easing concerns about the Fed. The report notes that markets were “trading suspiciously well” after the Clarity Act failure and a hawkish Fed hike on Wednesday, indicating resilience. However, the article does not offer predictions or investment guidance.

Sources

• The Block

Read also: Avalanche Treasury CEO Warns AI Agents Could Exhaust Blockchain Capacity