Digital asset markets ended the week on a firm note as Bitcoin (BTC) pushed above $80,000, shrugging off a Federal Reserve rate increase and a congressional setback on cryptocurrency legislation. In technology, Nvidia (NVDA) outlined ambitious growth projections for its chip business, while a climb in Treasury yields to the 5% mark created pressure across equity sectors. Here is a breakdown of the week's major market developments.

Bitcoin and Crypto-Linked Stocks Post Strong Gains

Bitcoin's price rose approximately 5.5% within a 24-hour period, reaching around $80,940. The advance came even as the Federal Reserve implemented a 25-basis-point rate increase (a basis point equals one-hundredth of a percentage point), bringing rates to a 3.75%-4.00% range, and as lawmakers failed to advance crucial digital asset legislation. Market participants had broadly anticipated the central bank's decision, which helped mitigate potential negative sentiment.

The cryptocurrency's strength lent momentum across the digital asset sector, with capital flowing back into the asset class. Equities with cryptocurrency exposure demonstrated similar strength throughout the session: Strategy's shares increased approximately 12%, crypto exchange Coinbase recorded gains near 10%, and trading platform Robinhood advanced roughly 8%.

Strategy maintains substantial Bitcoin holdings on its corporate balance sheet, creating direct exposure to cryptocurrency price fluctuations, while Coinbase sees immediate benefits from increased trading activity in digital assets. These three stocks had experienced declines earlier in the week due to rate concerns and legislative disappointments, making the subsequent bounce particularly notable.

Digital Asset Oversight Reverts to Regulatory Agencies

Congressional efforts to move forward with the Clarity Act encountered a roadblock this week. The proposed legislation aimed to establish more definitive regulatory boundaries for digital assets and to clarify jurisdictional responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The legislative setback does not signal an end to regulatory development. According to industry sources speaking with CoinDesk, both regulatory bodies are anticipated to continue crafting rules using their current statutory powers, even without fresh congressional mandates. The digital asset sector is now left navigating an environment without unified federal legislation, with agencies expected to exercise their existing regulatory authority to address emerging issues as they arise.

Nvidia Executive Projects Dramatic Sales Growth by 2027

Jensen Huang, Nvidia's chief executive, projected that the company's chip sales volume could approximately double between 2026 and 2027. According to projections referenced by Barron's, Nvidia's 2026 sales could reach approximately 5.09 million AI GPUs, along with tens of thousands of fully integrated AI server systems.

The anticipated expansion is expected to be driven by the upcoming Vera Rubin architecture, central processing units, networking solutions, and additional AI infrastructure offerings. The company previously indicated that revenue potential for its artificial intelligence chips could exceed $1 trillion cumulatively through 2027, illustrating the enormous investment levels directed toward AI computing infrastructure. Nvidia's chips power a large share of the world's AI computing, making its sales projections a widely followed gauge of AI infrastructure spending across the technology industry.

Treasury Yields Reach 5%, Creating Equity Market Headwinds

The ten-year United States Treasury yield climbed back to approximately 5% on Friday, enhancing bonds' relative attractiveness versus equities and compressing stock valuations. Nine out of eleven sectors in the S&P 500 experienced declines during trading. The ten-year yield also acts as a benchmark for borrowing costs across the economy, influencing mortgage rates and corporate financing, which extends its significance beyond the equity market.

Markets also navigated quarterly triple witching, the concurrent expiration of equity options, index options, and futures contracts, a phenomenon that typically amplifies market volatility. Elevated yields disproportionately affect growth-oriented stocks because they increase the discount rates applied to projected future earnings, reducing their present-day valuation.

This article was first published on Blockonomi.