A crypto-friendly Fed Chair nominee, and a step forward for the Clarity Act, among other bits of good news, hasn’t inspired a turnaround in sentiment around bitcoin. The price of bitcoin is down about 20% in the past year. Bitcoin broke below the $85,000 level this week; even signs of good news aren’t helping. The coin did reclaim some lost ground Friday, trading around $84,000 in the early evening.
Neither billions of dollars of purchases by a Bitcoin whale, nor recent developments with a key crypto industry bill, have restored bullish energy. Some industry experts appear to be looking to the price investors will view as cheap enough to get back in—and many bitcoin backers are still bullish on the outlook for this year and beyond. Bitcoin appears to have lost its draw — both as a hedge, and as a momentum play. But by the looks of recent bitcoin ETF flows, investors don’t seem to think we’re there yet.
In the last three days, bitcoin ETFs saw net outflows of around $985 million, according to Farside Investors. The Senate Agriculture Committee’s version of the Clarity Act, a key crypto bill that aims to create a regulatory framework for the industry, passed through a party line vote just yesterday. That’s good news, but the Senate Banking Committee’s draft has stalled. It is increasingly plausible that we approach a ‘value zone’ in the coming days, Farrell said, pointing to the mid-$70,000s as a level that would offer support.
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