Bitcoin, Ethereum, and XRP price movements show potential for fresh highs if the long-awaited Clarity Act passes this year.
The crypto market has gained a bullish trend over the past week despite slight consolidation over the past 24-hours. Bitcoin remains above $95,000, Ether holds above $3,300, and XRP trades past $2.05. As the optimism on regulatory clarity increases, investor sentiment is accumulating in these major cryptocurrencies.
When Will the Clarity Act Be Approved? Delay Sparks Uncertainty
The Clarity Act, originally scheduled for a January 15 vote, now faces an indefinite delay. The U.S. Senate Banking Committee postponed reviewing the crypto market structure bill after Coinbase withdrew its support.
This has been a sharp twist in the timeline and future of the bill. Coinbase CEO Brian Armstrong denied the allegations that it was due to political pressure. Critics, however, in the industry believe that the conventional players in the financial market may be influencing the legislators.
The Act was aimed at providing regulatory certainty regarding digital assets such as Bitcoin, Ethereum, and XRP. Its endorsement would create robust surges in large cryptocurrencies. As the market demand increases, there is a lot of hope that the bill will see the light of day this year.
Stress is still very high, and policymakers rethink their stands. The future of the Clarity Act approval is still unknown as long as consensus does not come back, and crypto investors and industry leaders are left in suspense.
Bitcoin Price Holds Strong $95,000 Amid Surging Institutional Inflows
Bitcoin price traded at $95,021 following a modest surge this past week, signaling renewed bullish momentum in the market. Strong technical indicators and institutional inflows are the factors that are pointed out by the analysts.
Notably, January 12-16 saw a huge inflow of 1.42 billion and 1.035 billion in U.S. spot Bitcoin ETFs, respectively, with BlackRock IBIT at the top.
On-chain metrics also favor a potential breakout, where Bitcoin has repeatedly tried resistance at around $95,000. When the BTC price trades above the $95K-$96K price range with volume, it will probably approach $100,000. However, a drop below $94,500 could challenge this outlook, highlighting potential short-term downside risk for investors.
Can Ethereum Price Surge Past $3,500 This Week?
Ethereum price continued its upward momentum, climbing to $3,306 after a strong week, gaining over 7% in value. In the past 24 hours, ETH increased by 0.59% to continue its seven-day gain.
There is still a strong interest on the part of the institution since the accumulation of whales is rising, which is an indication of greater confidence in the future of Ethereum. Recently, BitMine purchased 20 000 ETH worth more than 65 million, as an indication of aggressive purchasing activity.
Meanwhile, Ethereum ETF spot funds experienced net inflows of $479 million; its leader, BlackRock, ETHA, was of 219 million. If bullish momentum holds, the long-term Ethereum forecast could potentially surge past $3,500 in the near term.
XRP Price Prediction: Key Levels To Watch
As of the reporting, the XRP price traded at $2.05 over the past 24-hours. XRP price action remained range-bound after failing to sustain momentum above the $2.10 zone.
The Relative Strength Index was close to 43, which is weak momentum and neutral market conditions. The MACD lines were below the signal line, indicating the continued bearishness in the short-term.
Histogram bars were flat, which confirmed that there was no strong signal of the continuity of the trend. On the negative side, the short-term support is close to $2.00, and it has been tested several times recently.
Source: XRP/USDT 4-hour chart: TradingviewA decline below 2.00 will expose XRP to the second mark at $$1.80. On the positive side, recovery efforts could be resisted at around $2.10 at first. A long-term breakout of over $2.20 would reopen the targets of $2.35 and $2.40.
What Lies Ahead for Bitcoin, Ethereum, and XRP Prices?
The prospective passage of the Clarity Act remains a significant impetus to the optimistic mood in the cryptocurrency market. Although its delay has left the market with a sense of uncertainty, investors are hopeful that the bill may be eventually passed and it will bring much-needed regulatory sanity to the digital asset space. This transparency may be central in the process of making crypto assets such as Bitcoin, Ethereum, and XRP legitimate.
Source: https://coingape.com/markets/will-bitcoin-ethereum-and-xrp-prices-hit-new-highs-if-the-clarity-act-is-approved-this-year/
