Bitwise named the CLARITY Act as one of many key catalysts for crypto markets within the third quarter, saying its passage might probably mark the underside of the present bear market.
The asset supervisor laid out 4 catalysts in its Q3 2026 report. It added that this quarter is make-or-break for the market construction invoice.
Why the CLARITY Act Tops Bitwise’s Q3 Checklist
The CLARITY Act has been one of many most-watched payments for the crypto sector. Nonetheless, it has confronted key hurdles, with two points now stalling its progress.
First, ethics provisions tied to the president’s household’s crypto pursuits have change into a sticking level. Part 604, which shields non-custodial builders from cash transmitter guidelines, has additionally drawn contested debate amongst lawmakers and regulation enforcement teams.
Prediction markets put the chances of the invoice passing in 2026 close to 40%. That determine has fallen sharply from 75% in mid-Might.
Nonetheless, Bitwise stays cautiously optimistic in regards to the invoice’s possibilities. It stated a profitable vote would probably mark the underside of this bear market. In accordance with the agency, a failure would convey early volatility.
“If it passes, we imagine it probably marks this bear market’s backside. If it fails, anticipate volatility initially, then a clearing of uncertainty because the trade retains constructing underneath a pro-crypto SEC and CFTC,” the assertion learn.
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The Different Q3 Crypto Market Catalysts on Bitwise’s Radar
Along with the CLARITY Act, the asset supervisor outlined three extra upcoming catalysts. Stablecoins sit second on the listing. Regulators are on account of finalize GENIUS Act guidelines this quarter, forward of the regulation taking impact in January 2027.
Bitwise expects extra giant corporations to announce stablecoin initiatives earlier than go-live. It pointed to OpenUSD, backed by Stripe, BlackRock, Visa, Coinbase, and about 140 different corporations.
“Stablecoin provide has held close to $300 billion since final fall, a quiet present of resilience via crypto’s selloff. We see accelerating stablecoin development as a catalyst for chains like Ethereum and Solana in Q3, as consideration builds forward of January’s efficient date,” it added.
The agency additionally flagged the brand new Federal Reserve underneath Chair Kevin Warsh, whose method stays largely unknown to markets. He has held charges regular up to now. Bitwise expects a a lot clearer learn on his Fed by the top of the quarter. The course of charges remains to be laborious to name. Nonetheless, the agency famous that the Fed shapes sentiment throughout all threat belongings, so any fee choice might transfer markets.
Lastly, Bitwise highlighted a quiet re-rating in Decentralized Finance (DeFi). Prior to now month, Bitcoin (BTC) fell about 22%, but the agency’s DeFi index dropped simply 4%.
“DeFi normally swings a lot more durable than Bitcoin, so holding up this properly is uncommon, and nearly nobody is speaking about it. We predict DeFi is quietly re-rating,” the report learn. “We anticipate DeFi’s outperformance to maintain enjoying out in Q3, the sort of shift the market tends to note late.”
Bitwise’s outlook follows a punishing Q2, crypto’s third straight quarter of losses and its worst run since 2022. How the present quarter progresses will present whether or not that streak extends or breaks.
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The submit Why Bitwise Says CLARITY Act Passage Marks the Bear Market Backside appeared first on BeInCrypto.