It's been a tough year for the Bitcoin (CRYPTO: BTC) price.
In afternoon trade on Wednesday, the world's first and biggest crypto by market cap is trading for US$66,185.
While that's up 1.2% over the past 24 hours and up 3.4% over the past month, the price remains down 47.5% since the token hit an all-time high of US$126,198 on 7 October.
And crypto investors won't have found any shelter in Ethereum (CRYPTO: ETH) either.
At US$1,930, the Ethereum price is up 3.2% over the last week, but down 48% since this time last year.
The world's number two crypto by market cap notched its own record high of US$4,954 on 25 August 2025, leaving the token down 61% from that record.
Which brings us back to US lawmakers.
Image source: Getty Images
Could this US legislation support a Bitcoin price rebound?
Yesterday, the Bitcoin price jumped 2.5% amid news that US Treasury Secretary Scott Bessent said that the nation's crypto regulating Clarity Act was close to potentially passing through Congress.
If passed, the Clarity Act will give the SEC and the CFTC departments oversight into crypto trading, which could fully open the door to trading in cryptos like Bitcoin and Ethereum in US stock markets.
Commenting on the potential impact of the Clarity Act, should it pass, Miller Tabak + Co chief market strategist Matt Maley said (quoted by Bloomberg):
Bitcoin has quietly been building a nice 'base' by trading within a sideways range since early June. Now, with the Clarity Act getting closer to passage, it is trying to rally past of the top end of that range. So, if the act can push over the goal line, it could be a nice catalyst for a strong breakout move by Bitcoin.
Why has the world's top crypto crashed this year?
Through much of 2025, the Bitcoin price enjoyed strong buying support from the so-called debasement trade. That trade saw investors buying cryptocurrencies and gold as a hedge against a falling US dollar.
But that trade went into reverse this year as investors eyed a rapidly changing outlook for previously forecast interest rate cuts from the US Federal Reserve. Indeed, with inflation ticking higher in the world's top economy, many analysts expect the Fed to hold tight or even raise rates this year.
These changing expectations have seen the US dollar gain against most international currencies. And they've sent the Bitcoin and Ethereum prices tumbling.
