Congress Holds Hearings on Debanking's Impact on Cryptocurrency

On February 4, 2025, simultaneous events impacted the cryptocurrency market, particularly Bitcoin (BTC) and Ethereum (ETH). Congressional hearings on debanking raised concerns over banks potentially denying services to crypto firms, which could lead to market volatility; however, the rising U.S. debt, now totaling $33 trillion, spurred a 3.5% increase in BTC to $47,200 and a 2.8% rise in ETH to $3,150 as investors sought safe-haven assets. The sentiment shift was reflected in a change of the fear and greed index, moving towards increased investor confidence. Meanwhile, Ethereum faces challenges with its technology and competition, prompting initiatives like Etherealize, aiming to position ETH as a legitimate asset class on Wall Street. In this climate, the appointment of Samantha Power as head of USAID also influenced market dynamics, leading to slight dips in BTC and ETH prices shortly after the announcement. Overall, these developments underscore the interconnectedness of regulatory, economic, and technological factors shaping the future of cryptocurrencies.