Bitcoin, up 11% in a month... Trapped in $80,000 range due to CLARITY Act legislative delay

▲ Bitcoin (BTC)/AI generated image ©

While Bitcoin (BTC) is showing strong support by holding the $80,000 level, it stands at a critical juncture for further upside, due to the intersection of geopolitical risks from the Middle East and regulatory legislative uncertainties.

According to cryptocurrency media Watcher.guru on May 11 (local time), Bitcoin (BTC) is currently encountering strong resistance around $82,000 and is showing sideways movement at the $80,000 level. While it has maintained a positive trend with a 10.9% increase over the past month, the recent difficulties in peace negotiations between the US and Iran have created an atmosphere of tension in the market. In particular, the continuous surge in international oil prices, exceeding $100 per barrel, is becoming a key variable increasing volatility in the virtual asset market.

Concerns about the legislative delay of the CLARITY Act, a US cryptocurrency market structure bill that was discussed as potentially passing by the end of this month, are also cited as a reason for the price stagnation. With some banking sectors demanding provisions prohibiting stablecoin profits and policymakers calling for the addition of ethics-related clauses, the bill's processing has been halted. As concerns spread that the establishment of an institutional framework might be delayed, BTC remains in a price range without gaining additional upward momentum.

The macroeconomic environment is also hindering investors. This is because the US Federal Reserve (Fed) decided to freeze interest rates after the April Federal Open Market Committee (FOMC) meeting, maintaining a high-interest rate stance. As interest rates remain at a high level, investment sentiment for risky assets has contracted, and both individual investors and institutions are maintaining a cautious stance towards virtual assets in general, including Bitcoin.

Experts' opinions are divided regarding future prospects. Given the high external uncertainties, the prevailing view is that there is a high possibility of price correction or continued sideways movement for the time being. However, there is also an analysis that if Bitcoin strongly breaks through the psychological and technical resistance level of $82,000, it has enough energy to surge to the $85,000 mark immediately.

Ultimately, the current stagnant phase is interpreted as an unavoidable growing pain that emerges as macroeconomic indicators and geopolitical issues are resolved. Experts advise focusing on risk management rather than premature chase buying until the market's direction becomes clear. It seems that only when the current opaque situation is resolved can Bitcoin embark on a full-fledged rally once again.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*