Flows accelerated after the SEC's August 18 regulation announcement and Trump's August 20 push for the CLARITY Act. Institutions interpret clearer regulatory frameworks as lower legal risk on holdings.
The broader crypto market grew from $2.00 trillion on August 17 to $2.12 trillion by August 23, a $120B surge driven largely by Bitcoin and Ethereum rallies, with Bitcoin reaching $77,692.
The US Dollar Index fell 3% since end-July after Treasury Secretary Scott Bessent announced additional bond buybacks. A weaker dollar traditionally supports commodities and hard assets like Bitcoin.
Galaxy Digital estimates only a 10% chance of the CLARITY Act passing by year-end due to compressed Senate timelines. Market strength may depend on whether momentum sustains if legislation stalls.
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