Gold prices break through $5000, Clarity Act pending, the crypto market may face a critical watershed

January 27 News, Bitwise Chief Investment Officer Matt Hougan warned that the surge in gold prices above $5,000 per ounce and the legislative uncertainty surrounding the U.S. “Clarity Act” are having a noticeable impact on the cryptocurrency market. Hougan pointed out in a report that the rapid rise in gold reflects strong market demand for non-sovereign stores of value, while the unclear regulatory outlook could influence the adoption and price trends of digital assets.

In recent years, gold prices have experienced astonishing cumulative gains, with a 65% increase in 2025 and a further 16% rise since 2026, highlighting the impact of monetary expansion and debt pressures on investor confidence. Hougan noted that investors are seeking wealth storage methods that do not rely on centralized institutions, a trend that directly boosts the appeal of cryptocurrencies like Bitcoin. Networks such as Bitcoin, Ethereum, and Solana provide users with protections unmatched by traditional finance through self-custody, censorship resistance, and trustless mechanisms.

On the regulatory front, the “Clarity Act” was initially intended to legalize the current pro-cryptocurrency environment in the U.S., but recent legislative setbacks have caused the probability of passage in market forecasts to drop from about 80% to 50%. Coinbase CEO Brian Armstrong previously stated that the current version of the bill is unfeasible. Hougan warned that if the bill does not pass, the crypto market could enter a three-year “showcase period,” where price movements will depend more on actual application rather than market expectations.

Hougan analyzed that once the “Clarity Act” gains industry recognition, it could trigger widespread growth in stablecoins and tokenized assets, leading the market into a new upward cycle; conversely, it could also lead to increased caution and slower price growth. Nevertheless, he remains optimistic about the bill’s eventual passage, noting that regulatory certainty or practical application value will be a key watershed for the crypto market in 2026.

Overall, the historic rise of gold contrasts sharply with the uncertainty in U.S. regulation. Investors should pay attention to policy developments and real-world applications to seize potential opportunities and manage risks.