Grayscale Flags Further Bitcoin Decline if CLARITY Fails and Fed Hikes Again
Grayscale warns Bitcoin could fall further if the CLARITY Act isn’t passed and the Fed tightens. Passage of the law and a Fed pause may signal a bottoming opportunity.
Investment firm Grayscale issued a research update warning that Bitcoin may slide further if the CLARITY Act is not passed this year and the Federal Reserve opts for another interest‑rate hike. They identify the convergence of regulatory clarity and a Fed pause as the base case scenario under which Bitcoin may be nearing its cycle low.
A downside scenario emerges if the Senate delays CLARITY, Digital Asset Treasuries continue deleveraging, and the Fed tightens policy due to persistent inflation. In that case, forced selling by major holders could amplify downward pressure.
For prediction‑market traders, key catalysts are now expected Senate votes on CLARITY and upcoming Fed signals. These are the events likely to influence expectations of Bitcoin’s direction going into the second half of 2026.
