US Clarity Act May Not Drastically Impact Bitcoin Prices: Insights from Peter Brandt

Veteran trader Peter Brandt suggests that the potential approval of the US Clarity Act is not expected to significantly affect Bitcoin's price, even with its anticipated passage in January. While the legislation is essential for clarifying the regulatory framework of the crypto industry, Brandt does not see it as a major catalyst for price changes. Similarly, market analysts indicate that any price adjustments may already be reflected in Bitcoin's current valuation.

Key Takeaways

Peter Brandt believes that the US Clarity Act will not drastically alter Bitcoin's value.
The act is essential for regulatory clarity but not a game-changer for prices.
Other analysts, like Ledn’s John Glover, agree the impact on the market is already priced in.
Brandt predicts Bitcoin may drop to $60,000 by Q3 2026.
Ongoing discussions in Congress show mixed progress on the bill, indicating the crypto industry is closely monitoring its advancement.

US Clarity Act unlikely to be ‘world-shaking’ for Bitcoin’s price: Brandt

No Major Changes Expected for Bitcoin Prices

Experienced trader Peter Brandt stated that the potential approval of the US Clarity Act is not likely to cause any dramatic changes in Bitcoin’s price. This statement comes after recent news suggesting the act could be finalized by Congress as early as January. "Is it a world-shaking macro development? Nope. Needed for sure, but not something that should redefine value,” Brandt said in an interview with Cointelegraph. "Having an asset regulated, particularly one that dedicated supporters prefer to keep unregulated, is not a groundbreaking event,” he added.

His remarks follow a statement from David Sacks, the White House's crypto and AI advisor, who mentioned that the legislation is closer than ever to being passed. “We look forward to finishing the job in January,” Sacks noted.

Market Sentiment on the Clarity Act

While Brandt does not foresee the Clarity Act pushing Bitcoin back to its previous all-time high of $125,100, he acknowledged that it would still represent a notable advancement for the broader crypto landscape. "The Clarity Act would be positive because it would greatly clarify the regulatory structure for crypto assets," he explained.

Cryptocurrencies, Bitcoin Price, United States
Source: David Sacks

Echoing Brandt's view, John Glover, chief investment officer at Ledn, remarked that the potential passing of the Clarity Act has likely already been accounted for in the market. "I don’t expect this event to have a significant impact on the markets on day 1,” said Glover, adding that any price benefits may be more gradual. “This is another step toward broader acceptance of Bitcoin and ETH as investable assets, so I still anticipate an upward price trajectory over time,” he concluded.

Despite Brandt's belief in a bear market for Bitcoin, he mentioned that the Clarity Act might result in a “moderate downside bias.”

Future Predictions for Bitcoin

Brandt anticipates that Bitcoin could possibly decline to around $60,000 in Q3 2026, which would be a 31% fall from its current value of $88,000, as reported by CoinMarketCap.

Related: SEC commissioner remarks on crypto's role in privacy reassessment

The bill has garnered considerable attention not only within the crypto community but also among supportive lawmakers. On December 9, Congresswoman Cynthia Lummis, a Wyoming Senator and a leading figure in discussing digital asset regulation, expressed her intent to advance the bill soon. The senator noted that the crypto industry is "a little concerned" about the bill's progress, as drafts have undergone significant alterations during bipartisan talks.

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