The cryptocurrency market, which has remained range-bound in recent months, is showing signs of a recovery as the prospect of clearer digital asset regulation in the U.S. gains momentum. U.S. Treasury Secretary Scott Bessent noted that legislation regarding the "Clarity Act" has entered its final stages and urged Congress to pass the bill before the recess. Meanwhile, reports circulating on social media suggest that the White House has reached a consensus on the ethical guidelines framework for the act, further bolstering market sentiment. Following this news, BTC prices climbed 2.5%, nearing the $67,000 mark, with related crypto assets like XRP and sector-linked stocks also seeing gains. Overall, BTC has risen approximately 13% this month, snapping a two-month losing streak. Both technical indicators and institutional capital flows point to signs of a bottoming out as investor confidence gradually recovers.

Bessent Declares "Clarity Act" in Final Stages, Fueling BTC Rally

U.S. digital asset regulatory policy has become the focal point of the market. According to Bloomberg, Treasury Secretary Scott Bessent stated that the legislation for the Clarity Act is in its final stages and expressed hope for swift passage by Congress. Reports also indicate that the White House has reached an agreement on the ethical guidelines for the bill. This move toward policy clarity pushed BTC to $66,956 yesterday, its highest level since mid-June. ETH and XRP tracked the gains, while Coinbase shares surged 13%.

Spot BTC ETF Inflows Turn Positive for Three Consecutive Weeks

BTC has gained approximately 13% this month, ending a two-month slide. Data from SoSoValue shows that spot BTC ETF inflows have turned positive for the third consecutive week, with trading volume gradually recovering and derivatives positioning indicating a dissipation of selling pressure. Research institutions note that the recent resurgence in institutional interest stands in stark contrast to the severe selling pressure seen over the summer. Overall, technicals and market positioning are steadily improving, suggesting that the correction may be nearing its end.

AI Trading Cool-down Triggers Capital Rotation into Crypto Assets

Analysts at FRNT Financial noted that BTC has been consolidating within the $60,000 to $67,000 range since early June. The primary reason for this stagnation was the concentration of investor capital in Artificial Intelligence (AI) and large-cap IPOs. As the fervor surrounding AI trading subsides and market expectations for interest rate paths stabilize, capital is beginning to rotate back into crypto assets. Analysts believe that BTC is currently on a path of least resistance to the upside.

Has BTC Finally Bottomed Out After Prolonged Consolidation?

Historical experience suggests that crypto markets often complete a bottoming-out process through prolonged stability. Market strategists stated that the recent sideways movement of BTC has established a solid floor. The price is currently attempting to break through the top of its range, and should the bill pass successfully, it could serve as a powerful catalyst for a breakout. While recent indicators suggest a bottom is forming, investors should remain cautious of macroeconomic data and policy-related variables.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.