Bitcoin Above $97,500 as Crypto Rules Bill Fuels Risk Appetite

Price breaks a key level as Washington’s rulebook moves forward

Bitcoin traded above $97,500 on Tuesday, reaching about $97,758 at the session high after rebounding from an intraday low near $94,594. The move has pulled crypto back into the center of global risk appetite, with the largest token now acting as a live read on whether investors want exposure to higher-beta assets at the start of 2026.

The rally is landing as U.S. lawmakers push a Senate crypto rules bill through committees, a process that traders see as a practical step toward a clearer framework for listing, custody, and spot-market supervision. For markets, the combination of price strength and legislative progress matters because it can widen participation beyond retail flows, pushing more activity into regulated venues and into U.S.-listed proxies.

The rules bill focus is market structure, not a single token

The latest push in Washington is aimed at clarifying how digital assets are categorized and which agency leads oversight for different parts of the market. A central target is the long-running split between securities-style tokens and commodities-style tokens, with a larger role expected for CFTC spot market oversight in segments tied to trading and market conduct.

That distinction is important for liquidity. When exchange operators and custodians can map product lines to a clear rule set, the regulatory premium investors demand tends to fall, and market makers are more willing to quote tighter spreads. A firmer rulebook can also reduce the risk of sudden delistings or restrictions that disrupt volumes.

Coinbase and miners move first when policy risk fades

The most immediate equity response tends to show up in publicly traded infrastructure names. Coinbase often trades like a high-beta derivative on U.S. regulatory direction because its revenue is driven by volumes, spreads, and institutional activity. In this tape, the bill’s momentum helped lift Coinbase alongside a broader bounce in crypto-linked stocks.

Miners typically join the move when bitcoin rises above key levels because their revenue line is directly tied to price. A higher bitcoin price improves near-term profitability, strengthens balance sheets, and can lower forced-selling risk from heavily leveraged operators. That combination is one reason a “Coinbase and miners rally” can act as a quick confirmation signal that risk appetite is widening beyond the token itself.

ETFs and derivatives reinforce the move, but leverage can amplify swings

In this part of the cycle, bitcoin’s spot climb is closely watched alongside ETF flows and derivatives positioning. When ETFs see steady net buying, rallies often look more durable because demand is less dependent on short-term leverage. When leverage rises quickly, intraday reversals tend to be sharper, and the cost of protection climbs.

That protection is visible in crypto volatility hedges. Traders have been paying up for short-dated downside coverage while also buying upside exposure through calls, a mix that can keep implied volatility elevated even in a rising market. The effect is a higher carry cost for leveraged longs, which can create faster shakeouts when the price stalls.

Macro still matters, but bitcoin is trading its own catalyst set

Bitcoin can track rate expectations, but this upswing has looked more driven by policy clarity than by a single data print. Markets are still watching Treasury yields because higher real yields can tighten conditions for speculative assets. At the same time, a strong tape in crypto can persist even with firm yields if participants believe the addressable market is expanding through regulation, distribution, and institutional access.

That cross-asset link is why the words risk appetite show up repeatedly in multi-asset desks. When bitcoin holds gains after moving above a round number, it often supports sentiment in growth equities and other high-duration assets, even if the relationship is not perfectly stable day to day.

Why $97,500 matters for positioning and market psychology

The area above $97,500 has functioned as a practical threshold for traders because it sits near a zone where momentum strategies tend to scale up exposure. Once the price gets Above that level, some funds that run trend signals treat the move as confirmation, while short sellers and hedged books often reduce risk, adding fuel to the upside.

At the same time, the market needs follow-through. Without fresh inflows, breakouts can fade, especially when options positioning becomes crowded and participants lock in gains. That is why spot strength is being assessed together with liquidity measures, funding rates, and volumes on U.S. venues.

Three paths for the next leg in 2026

Base case is a choppy grind higher, with bitcoin consolidating around the mid-to-high $90,000s as the Senate process advances and traders balance regulatory optimism against rate uncertainty. Under this path, spot demand stays supportive, but volatility remains elevated because positioning is still sensitive.

The upside path depends on cleaner legislative progress, including fewer last-minute changes and a clear schedule for implementation. If the rules bill develops into a workable structure for custody, disclosures, and spot-market conduct, the market can price a wider institutional footprint. That tends to lift the whole complex, including exchanges, miners, and large-cap tokens that benefit from deeper liquidity.

The downside path is driven by a policy snag or a macro tightening impulse. A stall, an amendment that raises compliance costs sharply, or a renewed jump in yields can pull liquidity away quickly. In that scenario, the market’s strongest stress signal is usually a rise in hedging costs paired with falling spot, which can accelerate liquidations in leveraged books.

What the rally changes across portfolios

A sustained bitcoin rebound can tighten financial conditions in reverse, by encouraging risk taking and compressing spreads in crypto-adjacent credit. It can also pull flows into high-beta equity themes that trade on liquidity, including parts of fintech and high-growth tech. At the same time, a fast move up tends to raise the bar for “good news,” since valuations reprice before the hard data arrives.

For professional investors, the practical question is whether the combination of price strength and policy movement turns crypto into a steadier allocation category, or keeps it as a volatility instrument that needs tight risk limits.