BIT Official: Bitcoin Approaching Cycle Bottom Amid Fed Rate Hike Concerns and CLARITY Bill Delays

Huoxing Finance reports that, according to BIT Official’s weekly report, cryptocurrency market trading volume has dropped 80% from its peak and contracted by approximately 60% from the Q4 2025 high; the total market capitalization of the crypto market has also declined by 50%. The report notes that without a meaningful recovery in trading volume, the market will struggle to sustain a rebound. Although the market continues to digest two negative factors—the Federal Reserve’s hawkish policy stance and stalled progress on the CLARITY Act—Bitcoin remains range-bound between $62,000 and $66,000. BIT Official expects Bitcoin will ultimately break upward. The report states that Federal Reserve Chair Kevin Warsh has recently adopted a “speak little, act little” communication strategy, and the uncertainty surrounding his policy stance is unsettling markets. Warsh has been known for his hawkish stance over the past two decades, but markets previously anticipated that, with Trump’s support, he might shift toward a more dovish monetary policy; if this shift materializes, it could prove bullish for Bitcoin. Additionally, prediction market data shows the probability of the CLARITY Act being signed into law by the end of 2026 is currently only 32%. Senate Majority Leader John Thune stated that the Senate will prioritize other matters, and with the August recess approaching, the legislative window for this bill continues to narrow.