The World’s Cheapest Money Is Disappearing! Why Bitcoin Wins! | Bitcoin Simply

**Dante Cocobono** (0:00)
The Clarity Act is apparently at the finish line, and one of the biggest financial institutions in America says the unexpected.

**Jim Ferrioli** (0:06)
Clarity has been the major fundamental catalyst we've been tracking all year, and to clarify, we do not think it's priced in at these levels.

**Dante Cocobono** (0:13)
That sounds incredibly bullish for Bitcoin, but at the same time, there's trouble brewing underneath the surface. The cheapest source of money in the world may be drying up. The same cheap source of money that inflated American stocks, the AI boom, global debt and every risk asset on earth. So what does this mean for Bitcoin? What happens when its big legal catalyst arrives in the Clarity Act, but it arrives at the exact moment when the foundation underneath of global markets is collapsing? Today, I'm going to show you why the end of Japan's cheap money machine could crush the most crowded trade in the world and drag Bitcoin down with it. And then I'm going to show you what happens next. Governments will be forced to create the exact conditions that Bitcoin was built to survive. The Clarity Act is opening the door and Japan is lighting the match. This is DanteCocoBitcoinSimply. Let's go!
Let's start with the bullish news. The Clarity Act is closer to being passed than it ever has before. About a month ago, the Senate Banking Committee advanced the bill to the Senate floor. Then, for the past month and a half, we've been going back and forth between the Republicans and Democrats. And even despite this being talked about for the past six weeks, Jim Ferrioli believes that this isn't priced in.

**Jim Ferrioli** (1:21)
Clarity has been the major fundamental catalyst we've been tracking all year. And to clarify, we do not think it's priced in at these levels. We've been tracking the daily Clarity Act odds of passage in 2026 And we look at that with a consortium of different factors and see what's been driving Bitcoin's prices on a day by day basis. And in general, year to date, on average, Clarity Act odds, whether they're increasing or falling that day, can only really explain about 4% of Bitcoin's daily price move. So we think that Clarity Act passage is not being priced into Bitcoin here. And I think that's important for two reasons. So first, if it gets delayed beyond summer recess, first, we think the odds of it passing before midterms are very low.
Once you get back from summer recess, it's campaign time ahead of midterms. And so in that case, we don't think that would be a negative for Bitcoin's price. It doesn't appear to be priced in at these levels.
The flip side, if it were to pass in the next couple of weeks, we think that is really serving as a legislative call option.

**Dante Cocobono** (2:33)
He calls it a legislative call option. The Clarity Act is going to draw a distinct line between what falls under securities regulation and what falls under commodities regulations. It gives exchanges rules and institutions a framework. And Jeremy Allaire explains exactly what this legal certainty is going to do.

**Jeremy Allaire** (2:48)
Every major institution, every major bank, every capital markets firm, payments companies, enterprises, public companies, can all now build on this infrastructure, treat it as digital cash in the economic system. And that's a huge opening up. And that's why analysts look at this from a trillion dollars to several trillion dollars in the coming years.

**Dante Cocobono** (3:07)
So honestly, when I think about several trillion dollars of capital flowing into an asset class, I don't understand when I see price drops like this one. It means that people are trading and not investing.
Because, all of these things are bullish for Bitcoin. Even Patrick Witt, the Executive Director for the Council of Digital Assets for the White House, says that you're actually fading this trade when the largest asset manager in the world is backing it. That's coming from the White House. But I'm going to ask the question that you're probably thinking. If the Clarity Act is so bullish, then why isn't Bitcoin already exploding? Well, Bitcoin is just a small part of a larger global financial system. Bitcoin still lives in the largest and most leveraged financial system ever in the history of the world, and something much bigger than crypto regulation is happening underneath of the surface, mainly Japan, one of the largest economies in the world, upon which it's the venture capital funder of global markets. And while you've never owned a single Japanese stock, it's actually dominated your portfolio for decades. Japan had the lowest interest rates in the world. People would borrow the yen, convert it to dollars, and then use those dollars to invest into American assets. Treasuries, stocks, tech companies, you name it.