Bessent talk keeps Bitcoin supported ahead of Fed decision

Cryptocurrencies continue to drift

A big crypto rally is MIA, though crypto bulls will be pleased to see that bitcoin and ether have both been able to hold their ground. Bessent’s talk of more bond market intervention provides the strongest argument for holding cryptocurrencies in years, driving inflows and reviving sentiment in crypto in a way that many have been dreaming of. Even the expected Fed rate hike has failed to dent the renewed enthusiasm for the asset class, though for bitcoin the $81,000 area remains a significant hurdle.

Clarity Act limbo drags on

Tomorrow is expected to see a long-awaited vote on the Clarity Act, but it is still far from certain that it will garner the needed 60 votes. It feels like a bit of a last chance saloon for Clarity, at least in 2026. And beyond that it may struggle to get airtime at all, as a divided House turns into an attritional battleground in the waning years of Trump’s presidency.

Central banks dominate the week

A Fed rate hike seems a certainty for the week, though cryptocurrencies could be big winners if Warsh somehow manages to pull off an impressive about-turn. Though only slightly higher than expected, monthly core CPI seemed to firmly tip the scales, setting up the potential for a Fed-White House confrontation. A rout in the dollar would likely arise if they don’t move this week, which might provide the spark for bitcoin to challenge that £81K high.