Market participants attributed the rally to progress on the Clarity Act—pro-crypto legislation advancing in Congress with bipartisan support. Regulatory clarity, not favorable rules, is what's needed to unlock institutional capital deployment.
Crypto ETFs recorded net inflows for the week ending August 20. Solana's spot ETF added $2.1M, signaling that institutions are rotating back into alternative layer-ones after months of Bitcoin dominance.
Bitcoin's August rally was directly tied to rate expectations. With a 70% probability of a September Fed hold (down from 43.9% rate-hike odds a week earlier), macro traders positioned long ahead of the decision.
On the daily chart, Bitcoin's break above $71K clears a multi-week resistance level. Support now sits around $68.5K, with the next major resistance at $73K—a level not seen since August 2021.
A surprise Fed rate hike in September would trigger immediate liquidations. Conversely, a surprise cut would accelerate the rally. The August 21-September 18 window is critical for directional conviction.
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