Bitcoin Rejected at $80K as Inflation Fears Outweigh CLARITY Act Progress: Weekly Recap

TL;DR

Bitcoin faced rejection at $80K, dipping below $79,000 after inflation data revealed a three-year high of 3.8%. Despite some progress on the CLARITY Act, selling pressure kept BTC from sustaining gains.

Key points

Bitcoin rejected at $80K and dipped below $79,000
Inflation data showed a three-year high of 3.8%
CLARITY Act passed a Senate panel, seen as bullish
Bitcoin peaked at around $82,500 before falling
Selling pressure prevented sustained gains

The past week was quite eventful once again, with headlines spanning different sectors: from the highly anticipated meeting between US President Trump and China’s Xi Jinping to inflation data and some progress on the CLARITY Act front.

The business week began on the right foot for bitcoin as it rocketed from under $80,500 to roughly $82,500 following a quiet weekend. However, the rejection was swift, and BTC dipped below its starting point within hours.

Another breakout attempt took place on Tuesday, but the bears stepped up even faster this time, not allowing BTC to surpass $82,000. The selling pressure mounted on Wednesday after the inflation data for April went live in the US. Once it became known that the CPI numbers hit a three-year high of 3.8%, BTC reacted with a price dip to under $79,000.

More volatility ensued on Thursday when the CLARITY Act passed a Senate panel, which was regarded as a bullish development for the crypto industry, as it could crystallize the regulatory landscape in the country. Bitcoin traded at around $79,500 before the news spread, but quickly exploded to $82,000.

The bears reemerged at this point once again and didn’t allow any further gains. Although BTC managed to remain close to the $82,000 level for a while, it nosedived on Friday by over three grand from the top and currently struggles below $79,000.

Its market capitalization has fallen to $1.580 trillion on CG, while its dominance over the alts remains well above 58%. Nevertheless, BTC remains slightly in the green on a weekly scale, but it has been outperformed by many altcoins, including BNB, DOGE, XRP, and SUI.

Market Data

Cryptocurrency Market Overview Weekly May 15. Source: QuantifyCrypto

Market Cap: $2.71T | 24H Vol: $118B | BTC Dominance: 58.2%

BTC: $78,800 (+0.6%) | ETH: $2,210 (-1.38%) | XRP: $1.43 (+5%)

This Week’s Crypto Headlines You Can’t Miss

Bitcoin’s Drop Below $80K Was Not Random: Here Are the 3 Hidden Triggers. The largest cryptocurrency slipped below $80,000 on a couple of occasions in the past week, and many analysts believe it’s not random. Easy On Chain, for example, three reasons behind the asset’s decline.

Q&A

What caused Bitcoin to drop below $79,000 this week?

Bitcoin's drop below $79,000 was primarily due to inflation data showing a three-year high of 3.8%, which increased selling pressure.

How did the CLARITY Act affect Bitcoin's price this week?

The passage of the CLARITY Act by a Senate panel initially boosted Bitcoin's price to around $82,000, but it could not sustain those gains due to subsequent selling pressure.

What were the key inflation numbers released this week?

The key inflation number released this week was the Consumer Price Index (CPI) hitting a three-year high of 3.8%.

What was Bitcoin's price movement throughout the week?

Bitcoin started the week below $80,500, peaked at around $82,500, and ultimately struggled to maintain levels above $79,000 by the end of the week.