The fate of Bitcoin, Ethereum, and XRP hinges on the CLARITY Act slated for January 2026. The U.S. Senate’s review of the Digital Asset Market Transparency Act has drawn keen market attention. A plan to introduce a strategic Bitcoin reserve faces political disagreements, making its passage before 2027 uncertain. Regulatory clarity and ETF inflows are emerging as key variables to break through the bear market.
XRP, Bitcoin, and Ethereum have fallen more than 20% from this year’s highs, continuing a bear market, and the January 2026 CLARITY Act review and crypto reserve plans are expected to be pivotal. Ethereum has formed a dead cross and a bearish flag on the daily chart. If the 61.8% Fibonacci retracement fails, further downside could extend toward the November low near $2,622. Bitcoin has also produced a dead cross and is trading below the SuperTrend indicator, with a break below the 80,000 level potentially triggering a slide toward 74,000.
XRP, in the bear market, shows bullish divergence signals that suggest a potential reversal. Notably, a pattern resembling an inverse head-and-shoulders is forming as prices stabilize. Bullish divergence in the MACD and Awesome Oscillator could help XRP reclaim the $3 level if regulatory clarity and ETF inflows materialize.
With the CLARITY Act poised for a January 2026 Senate review, market participants are watching regulatory clarity and the potential framework for crypto reserves. The discussions around regulatory certainty and possible ETF inflows are viewed as pivotal to navigating what could become a notable market shift in the coming year. The coming months will be critical as policy clarity and market structure developments intersect with price action across the top cryptocurrencies.
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