Bitwise says CLARITY Act passage in Q3 could signal market bottom

Asset manager Bitwise has identified the CLARITY Act as a key catalyst for the cryptocurrency market, suggesting its passage would likely signal a bottom for the current bear market. In its third-quarter outlook report, Bitwise noted that this quarter is a crucial period for the bill, which will define the crypto market's structure. The firm highlighted that prediction markets now place the probability of the CLARITY Act passing this year at around 40%, a significant drop from 75% in mid-May. Bitwise explained that if the act passes, it is highly likely to confirm the bottom of this bear market. Conversely, if the bill is rejected, it could lead to increased short-term volatility, though the firm believes uncertainty would gradually resolve as the industry continues to develop under a pro-crypto U.S. SEC and CFTC.