Bitwise: CLARITY Act Passage Could Signal End of Crypto Bear Market
Bitwise eyes the CLARITY Act as a potential bear market bottom catalyst for Q3. Passage could unlock institutional confidence, while failure might bring short-term volatility before a clearer path emerges. Stablecoin regulation and Fed policy shifts also on their radar.
Bitwise is betting big on the CLARITY Act. They're calling its passage a potential bottom signal for the current crypto bear market, a key catalyst for Q3. The bill, however, faces hurdles, including ethics provisions and shielding for non-custodial developers, with prediction markets now giving it only a 40% chance of passing in 2026. If it passes, Bitwise sees it marking the bear market's end. If it fails, expect initial volatility, then a clearing of uncertainty under a pro-crypto SEC and CFTC. Stablecoin regulation, with GENIUS Act rules finalizing this quarter, is another major focus. Bitwise anticipates more large firms launching stablecoin projects, driving growth for chains like Ethereum and Solana. The firm also flagged the new Federal Reserve under Chair Kevin Warsh, whose rate decisions will shape sentiment across all risk assets. Finally, a quiet re-rating in DeFi is underway, with the sector outperforming Bitcoin despite the broader market slump, a trend Bitwise expects to continue and eventually catch the market's attention.