Crypto traders sold the news following Kevin Warsh’s Fed chair confirmation and a successful markup of the CLARITY Act, but dip buyers may save the day.
Crypto prices took an expected breather last week, but developments on the regulatory and TradFi adoption side continued to roll in.
- On Wednesday, the U.S. Senate confirmed Kevin Warsh as the next Federal Reserve chair. Some crypto investors hope Warsh’s appointment will usher in an era of accommodative monetary policy, marked by interest rate cuts and an expansion of the money supply, which could encourage spending by businesses and consumers.
- After a bipartisan markup, the CLARITY Act moved out of the Senate Banking Committee with a 15-9 vote and is now awaiting a full Senate vote.
- The U.S.-Iran peace talks stalled while U.S. President Donald Trump was in China on a state visit. Prior to the trip, Trump had rejected Iran’s new proposal and said the current ceasefire is “on life support.”
- U.S. stock markets hit new record highs, but data shows inflation rising, which amplified Bitcoin’s softer price action.
Last week, Bitcoin (BTC) found a ceiling in the $82,000 to $83,000 range as momentum traders hit their swing targets and the market ran short of new narrative catalysts to shift investor positioning.
For months, markets closely watched five key catalysts: the CLARITY Act, Kevin Warsh’s Fed chair nomination, Iran conflict risks, inflation data and crypto investment-product inflows. As those developments largely broke in Bitcoin’s favor, BTC climbed 35% from its February low below $60,000.
Now, traders are waiting for the next major driver to extend Bitcoin’s rally.
New Narratives Emerge
Markets commentator MacroScope flagged May 15 as the due date for Form 13F filings, when institutional investment managers disclose their Q1 2026 securities holdings and any changes to those positions.
On May 15, 13F filings may show which institutions bought or sold crypto-linked securities. Source: MacroScope / X
Markets are watching 13F filings to see which institutions bought or sold crypto-linked securities in Q1. They are also waiting for a Strategic Bitcoin Reserve update, after officials said a major announcement would come “within weeks.”
At Consensus Miami, Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, explicitly said that an update was imminent and that passing the CLARITY Act on July 4 “would be a tremendous birthday present for America, celebrating our 250th.”
Spot ETF Outflows, Liquidations Surge as Hot Inflation Rattles Investors
By the end of trading on Thursday, net outflows from spot Bitcoin ETFs reached $836 million, and May 13 saw a $630 million outflow, the largest since January. Some traders pinpointed Warsh’s confirmation as Fed chair and last week’s hot inflation report as factors impacting investors’ choice to reduce risk exposure.
In an interview with Mark Yusko, The Wolf of All Streets host Scott Melker said that:
- April’s CPI and PPI data cooled hopes for interest rate cuts, leading investors to derisk.
- Geopolitical tensions, primarily the war in Iran, and statements from Chinese President Xi Jinping about Taiwan and the U.S.-China relationship, weighed on sentiment.
- Traders took profit after the rally to $80,000 and “sold the news” following the successful CLARITY Act markup and upcoming Senate floor vote.
Scott Melker and Mark Yusko explain why Bitcoin sold off last week. Source: X / Scott Melker
Data from TRDR.io showed a surge in long liquidations on May 13 and May 15 as Bitcoin dropped below $79,000 on both occasions. Fortunately, the BTC/USDT market structure and order books on Coinbase and Binance indicate the $78,000 to $80,000 zone as an area of buying interest, possibly reinforcing the range as support.
BTC/USDT futures liquidations. Source: TRDR.io
On The Radar This Week
- Will stock and crypto traders continue to derisk as they digest what a Warsh-led Fed means for monetary policy?
- Will $78,000 to $80,000 remain a buying zone for Bitcoin traders, and will bulls find narrative catalysts to chase the $85,000 to $90,000 range next?
- Will markets perceive President Trump’s state visit to China as a success, and will the Iran-U.S. peace deal process move forward, stagnate, or go backward?
- What are the next narrative catalysts beyond the U.S. Senate setting a CLARITY Act floor vote date?
- Will the White House give a progress update on the U.S. Strategic Bitcoin Reserve?
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