Bitcoin Stalls After CLARITY Act Success: Will Pro-Crypto Fed, White House Save The Day?

Ray Salmond

Sun, May 17, 2026 astatine 10:09 AM CDT 4 min read

Crypto prices took an expected breather past week, but developments connected the regulatory and TradFi adoption broadside continued to rotation in.

• On Wednesday, the U.S. Senate confirmed Kevin Warsh arsenic the adjacent Federal Reserve chair. Some crypto investors anticipation Warsh’s assignment volition usher successful an epoch of accommodative monetary policy, marked by involvement complaint cuts and an enlargement of the wealth supply, which could promote spending by businesses and consumers.

• After a bipartisan markup, the CLARITY Act moved retired of the Senate Banking Committee with a 15-9 ballot and is present awaiting a afloat Senate vote.

• The U.S.-Iran bid talks stalled portion U.S. President Donald Trump was successful China connected a authorities visit. Prior to the trip, Trump had rejected Iran’s caller connection and said the existent ceasefire is “on beingness support.”

• U.S. banal markets deed caller grounds highs, but information shows ostentation rising, which amplified Bitcoin’s softer terms action.

Last week, Bitcoin (BTC) recovered a ceiling successful the $82,000 to $83,000 scope arsenic momentum traders deed their plaything targets and the marketplace ran abbreviated of caller communicative catalysts to displacement capitalist positioning.

For months, markets intimately watched 5 cardinal catalysts: the CLARITY Act, Kevin Warsh’s Fed seat nomination, Iran struggle risks, ostentation information and crypto investment-product inflows. As those developments mostly broke successful Bitcoin’s favor, BTC climbed 35% from its February debased beneath $60,000.

Now, traders are waiting for the adjacent large operator to widen Bitcoin’s rally.

New Narratives Emerge

Markets commentator MacroScope flagged May 15 arsenic the owed day for Form 13F filings, erstwhile organization concern managers disclose their Q1 2026 securities holdings and immoderate changes to those positions.

On May 15, 13F filings whitethorn amusement which institutions bought oregon sold crypto-linked securities. Source: MacroScope / X

Markets are watching 13F filings to spot which institutions bought oregon sold crypto-linked securities successful Q1. They are besides waiting for a Strategic Bitcoin Reserve update, aft officials said a large announcement would travel “within weeks.”

At Consensus Miami, Patrick Witt, the enforcement manager of the President’s Council of Advisors for Digital Assets, explicitly said that an update was imminent and that passing the CLARITY Act connected July 4 “would beryllium a tremendous day contiguous for America, celebrating our 250th.”

Spot ETF Outflows, Liquidations Surge arsenic Hot Inflation Rattles Investors

By the extremity of trading connected Thursday, nett outflows from spot Bitcoin ETFs reached $836 million, and May 13 saw a $630 cardinal outflow, the largest since January. Some traders pinpointed Warsh’s confirmation arsenic Fed seat and past week’s blistery ostentation study arsenic factors impacting investors’ prime to trim hazard exposure.