Why Is Bitcoin Above $80K After The Clarity Act Failed? | Bitcoin Simply

Nico Moran (0:00)

Bitcoin took more punches than Rocky Balboa this week. The Clarity Act was shot down by members on both sides of the Senate, and Kevin Warsh hiked rates, saying that inflation was a nightmare for them. And still, Bitcoin just broke 80k, and the honey badger doesn't care. Why is Bitcoin exploding when it should be crashing? Does Bitcoin know something that the rest of the market doesn't know? Is the market finally beginning to realize that AI is seeding the next great financial crisis and starting to rotate into Bitcoin? Today, I'm going to show you why Bitcoin continues to rally and show strength despite the negative news. And why we're due for a Q4 rally. This is Don Tococo, Bitcoin Simply. Let's go.

Bitcoin is popping like fried chicken grease out the pan. Cracking 80k like the sounds of pads cracking because football season is back. The Bitcoin bears are delusional like Cowboys fans thinking that they have a chance every single year. Over 100 million dollars in short leverage trades are being liquidated as we speak. They were betting on Bitcoin being crushed when rates were hiked. Rates were hiked for the first time since 2023 by 25 basis points. And according to Warsh, the economy looks great. But inflation, yeah, still persistent and not going anywhere.

That's my Bill Lundberg voice if you were wondering. Here's what he had to say about it.

Kevin Warsh (1:19)

The FOMC decided to raise the target range for the federal funds rate by a quarter of a percentage point to three and three quarters to four percent in support of the federal reserves dual mandate. The committee is continuing its policy of maintaining ample reserves in the banking system.

As noted in the policy statement released just a short while ago, economic activity is expanding at a solid pace. While uncertainty remains elevated, owing in part to geopolitical developments, domestic spending has been resilient. Productivity growth, strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.

But inflation remains elevated. Today's policy action will support a timelier return to the committee's two percent goal.

Nico Moran (2:15)

He's saying that inflation remains elevated because of the geopolitical events. And he says that the Fed is committed to its two percent inflation target. We haven't seen two percent inflation over the past five or six years. And sure, the Fed has ample reserves. But Bitcoin seems to notice that, yeah, today, starting today, they're going to start increasing their injections into the market. Up to $16.5 billion, in fact. One reason why the bears are baffled is because they're shocked that Bitcoin didn't crash more than two percent, just down to $75K when the Clarity Act didn't pass.

It failed to get 60 votes, and it continues to rally.

And that's probably because people like Paul Atkins, the chair of the SEC, said, it doesn't matter what Congress does. We're still going to innovate on top of this new and revolutionary technology. And the CFTC with Mike Selig also made similar comments. Bitcoin clearly doesn't care about Washington getting on board with the Clarity Act at all. But even despite that, let's go back to the Clarity Act situation. Some of the comments coming after this are just flat out crazy. Here's what Senator Warren has to say.

SPEAKER_3 (3:17)

So, you're opposed to the Clarity Act. Do you think there's anything that could happen to change it so that it would be appeasing to you in any way?

Elizabeth Warren (3:24)

Of course.

We need crypto legislation. I've been saying this for a long time. I put together a crypto bill.

Nico Moran (3:32)

We need legislation. And I wrote a bill. You mean like the 650 page bill that they've been belaboring and building on for the past four years? She cites concerns that the president's ethics weren't enough. Despite there being reports out there that the president would not be allowed to issue a meme coin. If anything was done, it would be done in a blind trust. And it can be litigated on by the judicial system, which is more provisions than any president has given in the past. But you do have to wonder why, given the fact that there's so much scrutiny and attention on the Clarity Act and presidents not having enough ethics that it comes out and says something like this.

Absolutely crazy.

SPEAKER_3 (4:08)

It's the new ad about the Trump coin.

Elizabeth Warren (4:10)

How it's very successful, it's sold out in just a couple of hours.

I'm with Real America's Voice. Our viewers want to get their hands on one of those. Is there a chance that you guys will probably release more at some point?