Crypto prices finally synced with the progress seen across the regulatory and TradFi landscape, but Bitcoin’s ability to hold above $80,000 remains in question.
Since early April, technical traders had called for a rally to $83,000. Now that short-selling in that zone has been absorbed and BTC is up more than 20% since April, technical data points to a cooling-off period.
Beyond the market’s sharp rally — and possible retests of former resistance as support — crypto also saw continued progress on regulation and mass adoption.
CLARITY Act Markup In May Seems Inevitable
“The language is reportedly still being finalized, with additional edits expected to reflect priorities from Democratic offices.”
Meanwhile, the White House is reportedly aiming for CLARITY Act passage in the House by July 4. While speaking at Consensus Miami, Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, said that passing the act on July 4 “would be a tremendous birthday present for America, celebrating our 250th.”
Morgan Stanley’s Crypto Trading Fees Undercut Competition
Last week, Morgan Stanley rolled out crypto trading on E*Trade, with a 50 basis point flat fee. Analysts quickly noted that the fee was lower than Schwab’s 75 bps fee on its competing product launched two weeks ago.
Morgan Stanley resumes the crypto trading fee wars. Source: Eric Balchunas / X
Strategic Bitcoin Reserve Coming “Within Weeks”
Meanwhile, Federal Reserve chair nominee Kevin Warsh is expected to receive formal Senate confirmation soon. A full vote is anticipated on the week of May 11. With Jerome Powell’s term as Fed chair set to expire on May 15, Warsh could be in the driver’s seat well before the end of the month.
Strategy Paused Bitcoin Buys, but Spot ETF Inflows Keep Rolling In
Meanwhile, spot Bitcoin ETF inflows continued to draw attention, with the weekly net inflow surpassing $1 billion for the first time since January. The week opened with a $630 million inflow, and, by Thursday, data showed net inflows in the $1 billion to $1.7 billion range.
ETF flows drive Bitcoin’s price expansion. Source: Swissblock / X
The combination of strong ETF inflows, crypto exchange reserve outflows and demand from known accumulator wallets for Bitcoin is tightening the available supply. At the same time, short squeezes in futures markets indicate that buy demand is finally outpacing sellers, lifting the price cap off the entire market.
On The Radar This Week
- Will the CLARITY Act markup happen? A markup could finally get the proposal out of the Senate Banking Committee and to a Senate floor vote by early July.
- Will Strategy resume its Bitcoin purchases, and will spot BTC ETF demand generate another $1 billion inflow week?
- Will traders provide sustained buy volume in spot and futures markets? With the $80,000 to $83,000 Bitcoin price target achieved, analysts anticipate a cooling period from short-term traders.
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