#GateSquareMidAutumnReunion ##FedAnnounceRateDecisionSoon
FOMC Day Plus CLARITY Failure - Why Today Is a Double Volatility Event for Crypto
We have two major catalysts colliding in one session.
First - The Fed. The rate decision is scheduled for 2 00 PM ET today, followed by the Summary of Economic Projections and Chair Warsh press conference at 2 30 PM ET. Markets are pricing an 87 to 95 percent chance of a 25 bps hike that would lift the target range to 3 point 75 to 4 point 00 percent. That would be the first hike since July 2023.
With the hike almost fully priced, the hike itself is not the trade. The dot plot is the trade. If the median 2026 projection comes in at 4 point 375 percent or higher, it signals more tightening ahead. If it prints at 4 point 125 percent or lower, the market will read it as one and done.
Second - The CLARITY Act just failed. Yesterday the Senate voted 49 to 50 against advancing the bill. It needed 60 votes to proceed. The legislation would have created the first comprehensive federal framework for digital assets.
Why it failed this time - Lead negotiators pointed to ethics issues linked to President Trump crypto holdings as a core reason for opposition.
Industry reaction was blunt.
Michael Saylor said the only clarity needed is Bitcoin.
Ripple CEO Brad Garlinghouse said this one stings and that a post mortem needs to be done on why it failed.
White House crypto advisor Patrick Witt called it a major disappointment and warned that failure raises the risk that global financial standards get set by Brussels or Beijing instead of Washington and New York.
Coinbase CEO Brian Armstrong said he was disappointed and expects the SEC and CFTC will now have to take steps to clarify rules on their own.
How BTC traded it
BTC dropped from around 77,800 to as low as 74,902 after the vote, about a 3 point 7 percent slide. Nearly 300M dollars in bullish bets were liquidated in the hour before the vote, which accelerated the flush of leveraged longs. Equities linked to crypto also sold off, Coinbase fell 10 percent and Circle fell 11 percent.
On the 4 hour chart BTC is hovering near 75,514. Price sits below MA5 at 75,756, MA10 at 76,484 and MA30 at 77,108. MACD reads around minus 206 point 4, with DIF at minus 507 point 1 and DEA at minus 300 point 6, so momentum remains negative. OBV is around minus 83 point 1K.
What levels matter now
The 76,000 area that was support has now flipped to resistance. Immediate support is the 24 hour low near 74,900. If that breaks, the next zone to watch is 73,000 to 74,000. For bulls to relieve pressure, BTC needs to reclaim 76,000 first, then the next resistance sits at 78,000 to 79,000.
What I am watching into the press conference
The dot plot plus Warsh tone will decide if the market reads today as a single hike or the start of a broader tightening cycle. A hawkish dot plot combined with the CLARITY failure leaves risk assets squeezed from two sides, regulatory uncertainty plus higher for longer rate expectations.
For now the line in the sand is 74,900. Hold above it and this stays a choppy consolidation. Break below it and the door opens for another leg down.
Not financial advice. Do your own research.
$BTC
#CLARITYAct #ShareWeekly
FOMC Day Plus CLARITY Failure - Why Today Is a Double Volatility Event for Crypto
We have two major catalysts colliding in one session.
First - The Fed. The rate decision is scheduled for 2 00 PM ET today, followed by the Summary of Economic Projections and Chair Warsh press conference at 2 30 PM ET. Markets are pricing an 87 to 95 percent chance of a 25 bps hike that would lift the target range to 3 point 75 to 4 point 00 percent. That would be the first hike since July 2023.
With the hike almost fully priced, the hike itself is not the trade. The dot plot is the trade. If the median 2026 projection comes in at 4 point 375 percent or higher, it signals more tightening ahead. If it prints at 4 point 125 percent or lower, the market will read it as one and done.
Second - The CLARITY Act just failed. Yesterday the Senate voted 49 to 50 against advancing the bill. It needed 60 votes to proceed. The legislation would have created the first comprehensive federal framework for digital assets.
Why it failed this time - Lead negotiators pointed to ethics issues linked to President Trump crypto holdings as a core reason for opposition.
Industry reaction was blunt.
Michael Saylor said the only clarity needed is Bitcoin.
Ripple CEO Brad Garlinghouse said this one stings and that a post mortem needs to be done on why it failed.
White House crypto advisor Patrick Witt called it a major disappointment and warned that failure raises the risk that global financial standards get set by Brussels or Beijing instead of Washington and New York.
Coinbase CEO Brian Armstrong said he was disappointed and expects the SEC and CFTC will now have to take steps to clarify rules on their own.
How BTC traded it
BTC dropped from around 77,800 to as low as 74,902 after the vote, about a 3 point 7 percent slide. Nearly 300M dollars in bullish bets were liquidated in the hour before the vote, which accelerated the flush of leveraged longs. Equities linked to crypto also sold off, Coinbase fell 10 percent and Circle fell 11 percent.
On the 4 hour chart BTC is hovering near 75,514. Price sits below MA5 at 75,756, MA10 at 76,484 and MA30 at 77,108. MACD reads around minus 206 point 4, with DIF at minus 507 point 1 and DEA at minus 300 point 6, so momentum remains negative. OBV is around minus 83 point 1K.
What levels matter now
The 76,000 area that was support has now flipped to resistance. Immediate support is the 24 hour low near 74,900. If that breaks, the next zone to watch is 73,000 to 74,000. For bulls to relieve pressure, BTC needs to reclaim 76,000 first, then the next resistance sits at 78,000 to 79,000.
What I am watching into the press conference
The dot plot plus Warsh tone will decide if the market reads today as a single hike or the start of a broader tightening cycle. A hawkish dot plot combined with the CLARITY failure leaves risk assets squeezed from two sides, regulatory uncertainty plus higher for longer rate expectations.
For now the line in the sand is 74,900. Hold above it and this stays a choppy consolidation. Break below it and the door opens for another leg down.
Not financial advice. Do your own research.
$BTC
#CLARITYAct #ShareWeekly
