Bitcoin (BTC) stumbled to around $115,000 on Tuesday following the blockage of several cryptocurrency-related bills in the US House of Representatives.
The sudden dip came after a string of crypto-focused legislation failed to clear a procedural vote, with 13 Republicans joining Democrats to oppose the motion in a 196-223 vote.
This setback disrupted the bullish momentum Bitcoin had built after hitting a fresh all-time high of $123,000 on Monday. Despite the tumble, the cryptocurrency has staged a swift recovery and was trading at approximately $118,716 by 09:55 GMT Wednesday morning.
The recent price surge had been largely driven by institutional enthusiasm, particularly around Bitcoin exchange-traded funds (ETFs), fueled by hopes that Congress would soon provide clearer regulatory frameworks for the crypto industry.
The fallout from the legislative disappointment spilled over into crypto-linked stocks. Bitcoin mining firms Riot Platforms and Mara Holdings saw their shares fall by 3.3% and 2.3%, respectively. Crypto trading platform Coinbase also faced pressure, with shares dropping 1.5% in after-hours trading.
While the legislative impasse rattled markets briefly, Bitcoin’s rebound suggests investors remain optimistic about the broader outlook despite short-term hurdles.