Bitcoin and crypto prices are struggling to break out of a downward trend that’s wiped $2 trillion from the combined market in a matter of months (with a BlackRock “shock” expected as soon as this month).
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The bitcoin price has found a floor at just over $60,000 per bitcoin, though a Federal Reserve “pivot point" could be about to change that.
Now, as one closely-watched trader outlines when bitcoin will make its next “parabolic” move, bitcoin could be hit by its “ultimate catalyst” that triggers institutional “fear of missing out” (FOMO) as soon as this month.
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“Large institutions are sitting on the sidelines waiting for regulatory guardrails," CK Zheng, a former global head of risk for Credit Suisse and now runs the crypto hedge fund ZX Squared Capital, said in emailed comments.
“The formal passage of the Clarity Act into law will be the ultimate catalyst, sparking a new bull market as institutional allocators race to gain exposure out of a fear of missing out.”
The Clarity Act, championed by U.S. president Donald Trump, would see crypto market governance carved up between U.S. regulators, given legitimacy as a financial asset class for the first time.
The odds of the Clarity Act being passed this year have plunged to 46% on the Polymarket prediction platform, down from more than 70% in May, as traders see the window of opportunity closing fast.
The Clarity Act almost got over the line in January before it was torpedoed by crypto exchange Coinbase, with chief executive Brian Armstrong declaring it would have been worse than no bill in its form at the time due to limits it placed on dollar-pegged cryptocurrencies known as stablecoins.
Demand for bitcoin via financial giants rushing into bitcoin exchange-traded funds (ETFs) has caused analysts with Bernstein to predict the bitcoin price could soar to $200,000 by 2025, $500,000 by 2029, and $1 million by 2033.
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ForbesNext ‘Generational Wealth’ Creator—The Massive 50x Crypto Price Prediction That Could Be About To Smash BitcoinBy Billy BambroughA $500,000 bitcoin price would give bitcoin a market capitalization of $10 trillion as soaring demand, combined with an ever-dwindling supply of bitcoin, creates a supply-and-demand dynamic that sends the bitcoin price sharply higher.
"This is led by unprecedented bitcoin demand ($190Bn AUM in 2025E vs. $60Bn today) via ETFs run by the world’s leading asset managers, and bitcoin supply being constrained," Bernstein analysts wrote in a note seen by Business Insider.