Bitcoin Stalls After CLARITY Act Win: Will a Pro-Crypto Fed and White House Save the Day?

The Bitcoin CLARITY Act rally appears to have hit a pause. After months of momentum fueled by favorable regulatory and political developments, crypto prices took a widely expected breather last week. Yet even as Bitcoin cooled off, the broader picture remained busy, with fresh news rolling in on both the regulatory front and traditional finance adoption.

The question now facing traders is simple but pressing: with one major catalyst already played out, what comes next to push the rally forward?

Where Bitcoin Stands Now

Last week, Bitcoin ran into a clear ceiling in the $82,000 to $83,000 range. The slowdown wasn’t a mystery — momentum traders had reached their swing targets, and the market simply ran out of fresh narratives to shift investor positioning.

To appreciate how far Bitcoin has come, it’s worth looking back. For months, the market fixated on five major catalysts:

• The CLARITY Act
• Kevin Warsh’s nomination as Fed chair
• Risks tied to the Iran conflict
• Inflation data
• Inflows into crypto investment products

As most of those developments broke in Bitcoin’s favor, BTC surged roughly 35% from its February low below $60,000. With those drivers now largely resolved, traders are waiting for the next big spark.

A Week of Major Developments

Several significant events shaped the backdrop last week, each carrying weight for crypto markets.

On Wednesday, the U.S. Senate confirmed Kevin Warsh as the next Federal Reserve chair. Many crypto investors are hopeful that Warsh will steer the Fed toward more accommodative monetary policy — think interest rate cuts and an expanding money supply — conditions that tend to encourage spending and risk-taking.

On the regulatory side, the CLARITY Act cleared an important hurdle. Following a bipartisan markup, it advanced out of the Senate Banking Committee on a 15-9 vote and now awaits a full Senate vote.

Geopolitics also stayed in focus. U.S.-Iran peace talks stalled while President Trump was in China on a state visit. Before the trip, Trump had rejected Iran’s latest proposal and described the current ceasefire as being “on life support.”

Meanwhile, U.S. stock markets climbed to new record highs — but rising inflation data took some shine off the moment and added pressure to Bitcoin’s softer price action.

New Narratives Begin to Take Shape

With the old catalysts spent, fresh storylines are already emerging to fill the gap.

Markets commentator MacroScope flagged May 15 as the deadline for Form 13F filings, the point at which large institutional investment managers must disclose their Q1 2026 securities holdings and any changes. Investors are watching these filings closely to see which institutions added or trimmed crypto-linked positions during the quarter.

There’s also growing anticipation around the Strategic Bitcoin Reserve. Officials have signaled that a major announcement would arrive “within weeks.” At Consensus Miami, Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, said an update was imminent — and suggested that passing the CLARITY Act on July 4 would be a fitting birthday gift as America marks its 250th anniversary.

ETF Outflows and Liquidations Rattle the Market

Not all the recent news has been bullish. By the close of trading on Thursday, net outflows from spot Bitcoin ETFs had reached $836 million. May 13 alone saw a $630 million outflow — the largest single-day exit since January.

Several traders linked this risk-off behavior to two factors: Warsh’s confirmation as Fed chair and a hotter-than-expected inflation report.

In an interview with Mark Yusko, “The Wolf of All Streets” host Scott Melker broke down what was driving the caution:

• April’s CPI and PPI data dampened hopes for near-term interest rate cuts, prompting investors to reduce risk
• Geopolitical tensions — especially the war in Iran and remarks from Chinese President Xi Jinping on Taiwan and U.S.-China relations — weighed on overall sentiment
• Traders simply took profits after the rally toward $80,000, effectively “selling the news” once the CLARITY Act markup succeeded

Data from TRDR.io showed a surge in long liquidations on May 13 and May 15, as Bitcoin dipped below $79,000 on both days. The encouraging sign, however, is that market structure and order books on Coinbase and Binance point to the $78,000 to $80,000 zone as an area of genuine buying interest — potentially reinforcing it as solid support.

What to Watch This Week

With the market at a crossroads, several open questions will likely determine Bitcoin’s next move:

• Will stock and crypto traders keep derisking as they digest what a Warsh-led Fed means for monetary policy?
• Can the $78,000 to $80,000 zone hold as a reliable buying area, and will bulls find new catalysts to chase the $85,000 to $90,000 range?
• Will markets view Trump’s state visit to China as a success, and will the Iran-U.S. peace process advance, stall, or unravel?
• What narrative catalysts emerge once the Senate sets a CLARITY Act floor vote date?
• Will the White House finally deliver a progress update on the U.S. Strategic Bitcoin Reserve?

The Bottom Line

The Bitcoin CLARITY Act rally has carried the market a long way, but every rally eventually needs a fresh reason to keep climbing. Right now, Bitcoin sits in a holding pattern — supported near $78,000 to $80,000, yet lacking an immediate catalyst to break higher.

The next leg of this story may well be written by a pro-crypto Fed under Kevin Warsh and a White House that has signaled clear support for digital assets. Whether those forces can reignite momentum, or whether inflation and geopolitical risk keep traders cautious, will define the weeks ahead.

For now, the market waits — watching Washington as closely as the charts.

This article is for informational purposes only and should not be considered financial advice. Cryptocurrency markets are highly volatile, and readers should do their own research before making any investment decisions.