Bitcoin falling below $80,000 has eroded some of the optimism that followed the Senate Banking Committee's CLARITY Act markup on Thursday. May 12 CPI data showed headline inflation at 3.8% YoY and core CPI at 2.8%, which analysts argue could weigh on risk sentiment across BTC, Ethereum, and Solana. The Fed's benchmark rate remains 3.5% to 3.75% after three straight meetings, with markets pricing about a 30% chance of a hike by year-end.

Crypto prices rose Thursday after the Senate Banking Committee advanced the CLARITY Act. Bitcoin climbed to $81,899 (about +2.7%) while XRP jumped above $1.50 with gains of more than 6%, a level it had not reached since March. Despite the move, the legislation still faces additional votes and procedural steps before it can become law.

The 309-page draft text of the US CLARITY Act was released Monday night ahead of a Senate markup scheduled for Thursday, drawing renewed focus on XRP’s regulatory positioning. Market commentator Bull Winkle argues the draft’s “network token” category and specific provisions could support XRP’s structure and prior court-related interpretations, while noting the bill remains a negotiable draft.

Bitcoin's recent rally is showing signs of fading, with analysts outlining scenarios that could extend the pullback toward $40,000 after a move above $82,000. One view frames the rebound as a "dead cat bounce," while another argues the broader bear phase may be about 55% complete at 216 days into the cycle. Separately, a market watcher said this week could represent a cycle top, citing past crash patterns and a potential liquidation risk tied to a rapid open-interest spike.

On April 1, Sen. Richard Blumenthal sent a follow-up letter to Binance co-CEO Richard Teng, asking the exchange to address alleged inconsistencies between its Senate testimony and later reporting about Iran-linked activity. He requested supporting documents, wallet details, and a year-by-year breakdown of transactions, while warning that Binance's prior responses may have been misleading. Blumenthal set an April 14 deadline for Binance to provide the requested records.

CryptoQuant contributor CryptoMe says Bitcoin could still decline this year, with the Realized Price used as a key level to watch. The analysis places Realized Price around $54,000 versus a market price near $67,000, a roughly 19.4% gap that has historically aligned with accumulation zones when spot trades at or below it. CryptoMe also noted past cycles where BTC stayed under Realized Price from seven days up to 301 days, warning recoveries may take time.

XRP traded around $1.30 on Monday while Bitcoin tried to stay above $67,000, but analyst Sam Daodu warned that a BTC pullback toward $60,000 could drag XRP sharply lower. He outlined supports at $1.28, $1.11 and $1.00, with a deeper area near $0.82 if selling accelerates. At the time of writing, XRP was $1.32 and down 8% over the past week.

After failing to break short-term resistance at $1.60 last week, XRP fell about 8% and moved back into the $1.35–$1.40 range. Analyst Sam Daodu points to persistent Bitcoin dominance, ongoing whale profit-taking since the $3.65 July 2025 peak, and holders' cost bases clustering near $1.44 as key reasons rallies fade. He also argues ETF inflows and regulatory developments could matter, but current demand may be too small to absorb supply.

US lawmakers unveiled a draft Digital Asset PARITY Act on Friday that would adjust tax rules for digital assets but drew criticism for leaving Bitcoin (BTC) outside key relief. The proposal would exempt certain stablecoin payments under $200 from gain/loss recognition if the token stays within 1% of its dollar peg, and it would let some proof-of-stake participants defer taxes on staking rewards. The Bitcoin Policy Institute urged lawmakers to extend similar treatment to miners and other block-reward recipients.