Bitcoin Defies Regulatory Chaos: Soars Back to $122K After Congress Crypto Bill Collapse
Bitcoin just pulled off a classic 'V-shaped recovery'—because apparently even Congress can't kill crypto's momentum.
The king of cryptocurrencies tanked briefly after yet another failed attempt at US regulatory clarity, then said 'hold my blockchain' and rocketed right back to $122K. Traders barely had time to panic-sell before the rebound.
Meanwhile in traditional finance: bankers are still arguing about whether to call it 'digital gold' or 'fraud'—depending on which hedge fund is paying them this quarter.
Semiconductor names drag down tech sector
Tech wasn’t SAFE either. Chip stocks started bleeding, and it wasn’t subtle. The VanEck Semiconductor ETF is now down 0.6% for the week and could snap a seven-week win streak. That would be its worst performance since its eight-week rally ended in March 2019.
ASML took the biggest hit. Shares were down 9.5% by midday Wednesday, already sitting 7% lower on the week. That’s ASML’s worst day since October 15, 2024, and its worst week since April. And the kicker? This came after the company beat both top- and bottom-line expectations in its second-quarter results. But the problem is what they said next: They don’t know if they’ll grow in 2026. Uncertainty like that makes investors run for the hills.
Other chip names got slammed too. Micron Technology, Marvell Technology, Monolithic Power Systems, Teradyne, and NXP Semiconductor all ended the day in the red. Nvidia, after printing an all-time high on Tuesday, cooled off a bit.
Shares slipped slightly, but the company is still pacing for its eighth straight weekly gain, up 3.4% this week. AMD followed suit with a strong 5% gain for the week so far, looking good for a second solid green close.
Meanwhile, bank earnings came in Tuesday, and they looked decent on paper. Goldman Sachs, Morgan Stanley, and Bank of America all beat expectations. But their stocks didn’t care. Every single one traded lower. The market clearly isn’t buying the narrative, or maybe it just didn’t matter with the Fed drama stealing the spotlight.
Bitcoin recovers, Ether starts to break out
While stocks whiplashed, crypto made a nasty dip before bouncing right back. Bitcoin crashed to $115,000 late Tuesday night after the House shot down a set of crypto bills. That vote was a slap to the face for anyone expecting clear rules in the near term. But by Wednesday, BTC was back at $122K. Traders didn’t wait around; they bought the dip instantly.
Ether, on the other hand, actually looked stronger than Bitcoin. It’s now broken out of a long-standing inverse head-and-shoulders pattern, which had been forming all year. Holding above the $2,870 breakout level gives it a target of $4,375. And it’s not just chart theory here. Momentum is blasting higher. ETH’s 14-day RSI jumped from the low 30s to the mid-70s in four weeks. In May, that number hit nearly 90 before things cooled down. So the MOVE we’re seeing right now is sharp—and it’s real.
If ether keeps pushing and hits that $4,375 target, it’ll blow past its December 2023 highs and start testing the top of the 2021 cycle. That would complete a multi-year bullish base that’s been building on the monthly log chart.
Even more interesting? Ether’s been outperforming Bitcoin. Since the lows in April, BTC has climbed 60%. ETH? Up 130%.
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