The Fed Hiked, CLARITY Died - Here's Why Bitcoin Is Still Ready to Explode! | Truth Block

Hurley (0:00)

Bitcoin just took two punches every bear was waiting for. The Clarity Act died on the Senate floor, and then the Fed hiked interest rates for the first time in three years. And after all that, Bitcoin dropped a measly 2% and then took it all back. So what happens to a market when bad news stops working? What will this Fed be forced to do next? And how does that collide with an election seven weeks away, a president demanding 1% rates, and an AI bubble that Washington has already quietly decided is too big to fail? Today, I'll show you why the worst week of headlines Bitcoin has had all year is a set up for a Q4 that will shock everyone, and why almost no one is bullish enough for what's coming. This is TruthBlock. I'm Hurley.

Let's mine truth.

Bitcoin is holding around $76,000 this morning right on the heels of the two biggest negative catalysts of the year, landing back to back in the same week. On Tuesday, the bill the entire crypto industry has been working toward for two years, the Clarity Act, officially died in the Senate. And instead of crashing to new lows, Bitcoin dipped by a measly 2.5%.

Then on Wednesday afternoon, the Fed raised rates for the first time in three years. And look how that landed. The Dow dropped more than 1% into the close. The 10-year went straight back over 5%, which is the highest it's been since 2007 And Bitcoin finished the day in the green. And all of that is on top of what Bitcoin has already been carrying, because we're still 39% below the all-time high.

Hash rate is down 18%, miners have been forced sellers, sentiment is dead, and oil is over $100 a barrel. Every one of these on their own is reason to be carving new lows right now. But we're not. So let's take the punches one at a time, starting with the Clarity Act. Tuesday's vote wasn't the bill itself, but it was the procedural vote to let the bill move. And it needed 60

And it only got 49 with four Republicans voting no. Democrats wanted a harder ethics clause after the president's family disclosed $1.4 billion in crypto earnings last year. For all intents and purposes, this bill is likely dead, as it won't be coming back before the midterms. But let me be clear, clarity did matter. It just mattered for exchanges, for crypto yield tokens, and for stable coin rails. It never mattered for Bitcoin. Bitcoin already has a Clarity Act. It's nine pages long, was published in 2008, and it's never needed 60 votes. A committee or a lobbyist. Michael Saylor put the practical version out yesterday. With Clarity stalled, he expects the SEC, the CFTC, and the Treasury to advance rules under existing law and banks to expand Bitcoin custody and lending anyway. Progress need not wait for Congress. Bitcoin doesn't get adopted the day a bill gets signed. It gets adopted the day the question inside a pension committee flips from why would we own this to why is our allocation zero. When I went down the Bitcoin rabbit hole in 2020, the part that almost stopped me wasn't the price. It was everything after you buy.

Wallets, seed phrases, nodes, and this constant fear that I was going to do something dumb and lose it all. I wish the Bitcoin Way had existed back then, and that's why they're a sponsor of this show. The Bitcoin Way gives you one-on-one white glove counsel from real human Bitcoin experts.

Anything from nailing down your self-custody setup to running your own node, to locking down your privacy and your security, and inheritance planning so the people you love can actually receive what you've built. No question is too basic for the Bitcoin Way. Visit thebitcoinway.com/hurley, and your first 30-minute consultation is completely free. So on Wednesday, Kevin Warsh raised rates a quarter point to a range of 3.75 to 4%, and 17 of the 18 officials on that committee say their bigger risk from here is inflation, not jobs. Then he said the important part. He said he'd be hard pressed to describe broad financial conditions as restrictive, meaning there's room to go even higher. And two hours later, the president posted this. Trump said interest rates should be 1% or less, lower the interest rates and fast. And 12 days before that, Trump threatened to stop trading with every country we run a deficit with if the Fed didn't cut. A reporter asked Warsh whether this was a test of the Fed's independence.

Kevin Warsh (4:01)

I don't have anything for you on discussions with the president.

And I'm not a Wall Street newsletter. Part of the independence of the Federal Reserve is we stay in our lane. Independence is a two-way street. We'll let people that do trade policy and fiscal policy stay in their lane too. That's how we can stand up here and call them the way we see them.