Bitcoin and Avalanche are moving sharply higher as a meeting between Donald Trump and crypto industry leaders feeds expectations for friendlier U.S. regulation, adding fuel to a short squeeze and stronger ETF demand that is lifting the broader digital-asset market.
Bitcoin, Avalanche rise on U.S. crypto policy hopes
Bitcoin last traded at $78,751.37, holding near a recent high after touching $81,235.03 earlier this week, while Avalanche was at $7.34, extending a rebound from the year’s lows. The move comes as traders price in a more constructive policy backdrop for the sector, with the discussion centered on the Clarity Act and a possible shift in how the SEC and CFTC oversee crypto markets.
The rally matters because regulation remains one of the biggest macro drivers for digital assets. Clearer rules could ease compliance risk for exchanges, token issuers and funds, while also opening the door to deeper institutional participation and more persistent capital flows into spot bitcoin products.
Technical momentum is also firm. Bitcoin is trading well above its 50-day moving average of $66,063.49 and its 200-day average of $69,173.23, with RSI readings at 88.5 pointing to overbought conditions even as price keeps climbing. Avalanche’s 50-day average sits at $6.63 versus a 200-day average of $8.15, while its RSI of 69.8 suggests the token is near stretched territory but still supported by buying interest.
For investors, the key is whether the latest surge becomes a durable rotation into crypto or another fast squeeze. Heavy trading volumes — including more than $28.6 billion in bitcoin turnover on the latest session — show the move is drawing real capital, but it also raises the risk of sharp reversals if policy momentum stalls or profit-taking accelerates.
A sustained breakout would likely benefit bitcoin miners, ETF issuers and crypto exchanges, while keeping pressure on short sellers and sidelined bears. The next catalyst is likely to come from more concrete U.S. regulatory signals, with traders watching for follow-up statements, legislative progress and ETF flow data to see whether the rally has staying power.
| Entity | Gains | Losses |
|---|---|---|
| Bitcoin bulls | ▲Higher prices, momentum | ▼Overbought risk |
| Avalanche holders | ▲Rebound and speculation | ▼Still below prior peaks |
| Crypto ETFs/exchanges | ▲Stronger flows, volume | ▼Policy uncertainty if talks fade |
| Short sellers | ▲— | ▼Squeeze and mark-to-market losses |
