Bitcoin has dipped below $66,000 after climbing as much as 2.5% to trade just shy of $67,000 on Tuesday for the first time since mid-June amid optimism around the Clarity Act and AI.
The move mirrors a broader market correction as investors await Alphabet’s earnings today.
Bitcoin and the broader crypto markets had rallied on reports that the White House on Monday night signed off on ethics language for the Clarity Act, the provision that had stalled the market-structure bill for months. Stoking further optimism, Treasury Secretary Scott Bessent on Tuesday told Fox Business that the bill is at the “1-yard line,” urging a vote before the August recess.
In the backdrop was also a broader tech rally on optimism around AI demand and looming earnings reports. Bitcoin had fallen in tandem with these stocks last Friday.
The End of Crypto Winter?
The Clarity Act optimism and the recent rally had again stoked speculation that the extended crypto market downturn is at an end.
“If [Clarity] passes, winter is over,” Bitwise investment chief Matt Hougan said on X. Amid recent developments the market is underestimating the chances of the bill passing this year, Hougan said.
Polymarket bettors most recently put the odds of the bill passing this year at 41%.
The bill has just over 10 working days left till the August recess and needs 60 votes in the Senate, which would require at least seven Democrats to cross over.
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