Cryptocurrency reentered a bullish cycle: Bitcoin's price reached $95k following a signing of the CLARITY Act!
The entire cryptocurrency space is now entering a new bull market, referred to as "Green Mode". Previous weeks of sideway moving had caused Bitcoin to trade below a psychological barrier of $95,000. With its recent breakout above this peak, Ether is also on the rise and recently surpassed $3k+. Currently, the value of all crypto is nearing $3.3 Trillion.
Three key factors explain the recent rapid growth of cryptocurrency:
1️⃣ CLARITY Act - A Game Changer:
The most impactful driver behind this new increase in positive sentiment around the crypto ecosystem is the passage of the CLARITY Act, (Digital Asset Market Clarity Act). The CLARITY Act created an area of distinction (or a "bright line") between what is considered to come under SEC regulation, vs. CFTC regulation. Without a regulatory home, many institutional investors were unable to invest in digital assets due to the inability to determine who was in charge of overseeing the asset class. Since many digital assets will now fall under the CFTC's Commodity framework, the fear of the unknown is now greatly reduced.
Improving Inflation - Lower Fed Rate Potential
According to the most recent CPI Report, core inflation has decreased to 2.6%. Macro forces appear to be flexing their muscles on the economy allowing the Federal Reserve to make rate cuts in December 2026 due to the downward performance of the US Dollar relative to other currencies. Conversely, the reduced performance of the US Dollar Index ($DXY) enhances the performance of higher risk investments such as Bitcoin ($BTC) and Ether($ETH).
Short Squeeze/Liquidity
As Bitcoin began to make higher highs and break through resistance levels ($94K+) within the same time period, nearly $680 million was liquidated in short squeezes within 24 hours of the first major liquidation of short positions. This massive liquidation allowed the price momentum to convert strong resistance levels into newly established support levels.
Ethereum ($ETH): Keep an eye on that $3,450 Resistance. A breakout through $3,450 will be confirmation of a "lagging rally" for altcoins.
A change in price momentum is becoming evident — is this the beginning of a new move towards $100K, or just a "bull trap" before one final shakeout?
👇 Comment with your price predictions! #MarketRebound #BTC #ETH #CLARITYAct #Write2Earn $BTC $ETH $BNB
📉 Key Levels to Watch
Bitcoin ($BTC): If we can close a daily candle above $95,500, look for it to move towards the Bermuda Triangle of $100K.
