On the 15th of September the Senate held the voting required to pass the Clarity Act, the Act is supposed to provide clear rules for what the law says about Crypto so that there would be no room for debate or reliance on other asset and banking laws. If the Act was passed it was expected that there'd be a huge uptrend in crypto prices, because now crypto is specifically backed by law and traditional investors can have more confidence.
The Act couldn't get enough votes to become law, a huge disappointment, but crypto prices didn't drop as most of us had expected.
The very next day the USA Federal Reserve were to announce the reduction or increment of interest rates. Lower interest rates means borrowing would be more profitable, a lot more borrowing would be done, and a lot of that would troop into the crypto market and cause an uptrend.
And if you know how it goes you know that the markets don't wait for the money to come into it before the uptrend begins. Simply the knowledge that interest rates are now lower and would send some money crypto's way would make the uptrend begin right from the day of the announcement.
An increase in the rates is supposed to do the opposite, but the rates were increased and nothing happened to the prices. This came as a shock to a lot of us, and it's still a big wonder. And what is more? Bitcoin just broke $86k for the first time since January, Ethereum broke $2,700 for the first time since then too. Other Alt coins are seeing gains in the 7% range too.
How come?
No one really knows, but the suspicion is that the fact the SEC and CFTC would make clear crypto rules that would do what the Clarity Act was supposed to do is the reason why.
It would be lovely if that happens, and this is probably the reason, but I think in addition to that another reason why the prices are still doing good are three: number one, probably just manipulation and a bull trap on the way. Emphasis on the word "probably". Number two, some insider information we don't know about (maybe having to do with Trump's impending meeting with Xi Jinping or something). Number three: a combination of economics factors that would only be clear in hindsight.
It's crazy how there are always so many factors to consider when attempting analysis of crypto. So so many.
One thing I'll really like to say, though, is that all the bull runs that took Altcoin with them weren't usual started by just one catalyst. It's usually a combination of events. The Clarity Act would have been a good catalyst but it usually takes more than one thing. Plus other cycles didn't take something similar to a law passed to moon, so it is possible we get a bullrun with some other things going on currently. Hindsight is what usually makes the catalysts clearer.
Plus catalysts are kinda overrated, the crash of October 10th 2025 did not require a catalyst. So that is a huge indication that big things can happen without a catalyst.
The End
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