Bitcoin holds above $63,000 as Iran tensions rise, BIP-110 debate intensifies
Investing.com -- Bitcoin traded above the $63,000 mark over the weekend, showing resilience despite a fresh escalation in the Iran conflict, renewed debate over Bitcoin’s blockchain rules, and growing momentum behind U.S. digital asset legislation.
The world’s largest cryptocurrency was trading down 0.42% at $63,984.1 as of 04:56 ET (08:56 GMT) after the U.S. carried out a third round of strikes on Iranian military targets and Tehran again declared the Strait of Hormuz closed.
Bitcoin was little changed on the day even as geopolitical tensions threatened global energy supplies.
Unlike previous Middle East flare-ups, crypto markets showed little sign of panic. With traditional financial markets closed for the weekend, Bitcoin was effectively the only major liquid asset available to price geopolitical developments. Investors are now watching the reopening of oil markets to see whether crude prices reflect the latest tensions.
Attention is also turning to Washington, where Senator Cynthia Lummis renewed calls for Congress to pass the CLARITY Act, warning that the current legislative session could be the best opportunity to establish a comprehensive U.S. regulatory framework for digital assets before 2030.
The bill, which has already cleared the House, would clarify oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Meanwhile, Bitcoin’s developer community remains divided over BIP-110, a proposal that would temporarily restrict non-financial data stored on the blockchain. The proposal faces an early August deadline but has attracted virtually no support from major mining pools, with miner backing remaining below 1%.
Prominent Bitcoin advocates, including Strategy Executive Chairman Michael Saylor and Blockstream co-founder Adam Back, have warned that changing Bitcoin’s consensus rules to address blockchain "spam" could create greater long-term risks than the issue itself.
Current signaling suggests the proposal is unlikely to secure enough support to activate.
Separately, Singapore highlighted growing cooperation between regulators and the crypto industry after police and seven cryptocurrency exchanges, including Coinbase, helped prevent more than $4.2 million in potential scam losses during a six-week operation.
Authorities used blockchain analytics to identify more than 145 potential victims before transfers were completed, underscoring the increasing role of public-private partnerships in strengthening trust across the digital asset ecosystem.
Crypto price today: altcoins mostly lower on Sunday
Broader cryptocurrency markets also traded lower on Sunday. Only ETH posted gains among leading cryptos.
World no.2 crypto Ethereum rose 0.57% to $1,805.71.
World no. 3 crypto XRP fell 1.13% to $1.0940.
Solana declined 1.41%, and Cardano also crashed 1.85%.
Among meme tokens, Dogecoin dropped 1.48%.
