Bitcoin jumped 12% because Trump and some crypto executives want Congress to pass something called the Clarity Act. The chart moved up. Retail traders think they know why.
They don't.
The Clarity Act would presumably clarify cryptocurrency regulations, which means absolutely nothing to a price chart that was already going to do whatever it was going to do anyway. Bitcoin hit levels not seen since early June. That was ten weeks ago. Congratulations on remembering a price from summer.
Somewhere right now a guy named Derek is texting his group chat about regulatory tailwinds. Derek bought at $67,000 in November 2021. Derek thinks this Trump push means institutional adoption is finally here. Derek has thought institutional adoption was finally here forty-seven separate times. Derek will die believing the next catalyst is right around the corner.
The technical picture shows a breakout above resistance with increasing volume. That sentence would be true if Trump was pushing the Clarity Act or if Trump was pushing a grocery cart off a bridge. The 50-day moving average crossed above the 200-day three weeks ago. Nobody writing headlines noticed because moving averages don't generate clicks unless you can attach them to a president doing something.
Crypto executives joining Trump for a last ditch effort is a phrase that should make you run. Last ditch efforts are what people attempt when the thing they want is about to not happen. But Bitcoin went up, so now every moron with a Coinbase account thinks they understand Washington.
The price was oversold on the weekly timeframe. It bounced. A nearby president took credit.
Derek just bought more.
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