Crypto market rallies as lawmakers limit presidential authority on Middle East conflict

Major tokens bounced early Wednesday, looking to snap their five-losing streaks after the Senate voted to end President Donald Trump's Iran war that injected significant uncertainty into global markets.

The so-called Upper House voted 50-47 to pass the bill, after seven failed attempts since the conflict began in late February.

Bitcoin, the leading cryptocurrency by market value, rose to $77,200, up 0.5% since midnight UTC hours. $XRP ($XRP), ether (ETH), and solana (SOL) rose 0.4% to 0.8%, according to CoinDesk data. These gains followed five straight days of losses that saw BTC pull back to nearly $76,000 from $82,000, as U.S. Treasury yields hardened and spot ETFs registered massive outflows.

Traditional markets also offered risk-on cues, with WTI crude futures falling 0.75% to $103.42. Yields on the 10- and two-year Treasury notes fell by over two basis points each, and futures tied to Nasdaq rose 0.33%.

Adding to the positive sentiment in the crypto market, President Trump on Tuesday directed the Federal Reserve to review how depository institutions may be granted access to payment services. This is a critical development for the crypto industry, which has long struggled with securing stable banking relationships and integrating into the traditional financial system.

"Wider access to payment rails and depository services can improve institutional confidence, liquidity, settlement efficiency, and long-term adoption," Naeem Aslam CIO at Zaye Capital Markets, said in an email.

Experts looked to Wednesday's release of the minutes of the April Federal Reserve meeting as the next major catalyst for the market.

"The April FOMC meeting minutes are due Wednesday at 18:00 UTC and will be parsed for how persistently above-target inflation is being weighted against growth risks," Dessislava Ianeva, analyst at Nexo, said.