Bitcoin Recovers Above $81,000 After Two Weeks, Solana Surges 11%

Major cryptocurrencies, including Bitcoin, saw significant gains. Despite delays in the U.S. Clarity Act legislation and a Federal Reserve interest rate hike, improved regulatory clarity from the Securities and Exchange Commission (SEC) and Bitcoin spot ETF fund inflows lifted market sentiment.

On October 18 (local time), Bitcoin traded at $81,128 on Binance's Tether (USDT) market, up 6.25% from the previous day and reclaiming the $81,000 level for the first time since October 4 after a two-week decline.

Altcoin gains were even more pronounced: Ethereum rose 7.20% to $2,620, XRP climbed 7.95% to $1.40, and Solana surged 11.6% to $113—the highest among major cryptocurrencies. Dogecoin rose nearly 8% to $0.088, Binance Coin (BNB) gained 3.8%, and Zcash (ZEC) rose 3.7%.

The rebound was largely driven by regulatory shifts in the U.S. The SEC announced an 'Innovation Exemption' on October 17, granting conditional regulatory relief for up to five years to platforms tokenizing stocks listed on U.S. exchanges. SEC Chair Gary Gensler described it as a step toward 'on-chain transformation of U.S. capital markets.'

The move came amid stalled progress on the Senate's Clarity Act, leading analysts to conclude that regulators are using existing authority to advance digital asset policies despite legislative delays. The Wall Street Journal noted that SEC actions and the Commodity Futures Trading Commission’s (CFTC) regulatory moves contributed to Bitcoin’s rebound.

Institutional capital also returned: U.S. spot Bitcoin ETFs saw net inflows of approximately $159.5 million on October 17, reversing a previous outflow of $450.3 million on October 15 and $296 million on October 16.

The Federal Reserve’s rate hike—its first in three years—had less market impact than expected, with crypto markets stabilizing without further sharp declines. Oil price drops also eased inflation concerns, supporting risk asset sentiment.

Bitcoin breaking above the $80,000 threshold triggered short-covering and a rotation into higher-volatility altcoins, driving broader market recovery.