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VADODARA, January 29, 2026 — The U.S. Senate Agriculture Committee passed the CLARITY Act. White House advisor David Sacks immediately hailed the move. He called it a critical step toward establishing a federal digital asset framework. This latest crypto news arrives amid severe market fear. Bitcoin trades at $84,297, down 5.43% in 24 hours.
David Sacks, the White House advisor on AI and cryptocurrency, issued a statement. He confirmed the U.S. Senate Agriculture Committee passed the CLARITY Act. According to his official remarks, this brings the nation "one step closer" to a regulatory framework. Sacks emphasized the administration's goal. It aims to make the United States the global hub for cryptocurrency.
The committee's action represents a procedural milestone. It does not guarantee full Senate passage. However, it signals bipartisan momentum. Market structure suggests regulatory clarity acts as a liquidity catalyst. Consequently, this development carries weight beyond political headlines.
Historically, U.S. regulatory progress triggers volatile price reactions. The 2024 FIT21 Act passage saw a similar pattern. Initial sell-offs preceded sustained institutional inflows. In contrast, the current Fear sentiment score of 26 indicates extreme caution. This decouples price action from regulatory news.
Underlying this trend is a liquidity grab. Short-term traders are exiting positions. Long-term holders are accumulating. On-chain data indicates stablecoin reserves are building. This suggests capital is waiting on the sidelines. Regulatory certainty could unlock it.
Related Developments: This move follows other key regulatory events. For instance, the SEC recently delayed decisions on crypto innovation exemptions, adding to market uncertainty. , analysis of Bitcoin futures positioning shows a near-equilibrium long/short ratio amid the prevailing fear.
Bitcoin's price action shows a clear Fair Value Gap (FVG) between $86,500 and $88,000. This zone acts as immediate resistance. The current price of $84,297 tests a critical Order Block established in late December. A breakdown below $82,000 would invalidate the bullish higher-timeframe structure.
Market structure suggests the 50-day moving average at $85,100 is . The RSI reads 38, indicating oversold conditions. However, volume profile shows weak buying interest. This creates a potential for a Gamma Squeeze if volatility spikes. Fibonacci retracement levels from the 2025 all-time high place key support at the 0.618 level near $81,500.
| Metric | Value | Context |
|---|---|---|
| Crypto Fear & Greed Index | 26/100 (Fear) | Extreme fear, often a contrarian signal |
| Bitcoin Price | $84,297 | Down 5.43% in 24h |
| Key Technical Support | $82,000 | Bullish invalidation level |
| Key Technical Resistance | $88,000 | Top of Fair Value Gap |
| RSI (Daily) | 38 | Oversold territory |
Regulatory clarity directly impacts institutional adoption. A federal framework reduces legal uncertainty. This allows TradFi entities to allocate capital. According to analysis from the Federal Reserve, regulatory ambiguity has been a primary barrier to bank engagement with digital assets. The CLARITY Act's progress addresses this.
Market analysts note a bifurcation. Retail sentiment remains fearful. Institutional pipelines are filling. This creates a potential liquidity mismatch. The next 12 months could see a significant re-rating of crypto assets. Regulatory progress accelerates this timeline.
"The committee passage is a procedural green light. It doesn't change the tape today. But it alters the 12-month liquidity forecast. We are watching for a break above the $88,000 FVG as confirmation of a sentiment shift. Until then, structure is bearish below $82k." — CoinMarketBuzz Intelligence Desk
Two primary technical scenarios emerge from current market structure.
The 12-month institutional outlook hinges on regulatory finality. The CLARITY Act's journey through the Senate will be critical. Historical cycles suggest that post-regulatory clarity periods see increased M&A activity and capital formation. This aligns with the administration's stated 5-year horizon to establish the U.S. as the dominant digital asset hub.

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