Bitcoin sentiment soars to the highest in months following landmark committee approval of the CLARITY Act.
According to data from Santiment, bullish Bitcoin comments on social media have risen to one of the most coveted figures of the year, with 1.55 bullish comments for every 1.00 bearish comments. However, on-chain data is I might be getting ahead of myself. itself.
Bitcoin Sentiment Points to Greed After CLARITY Act Vote
The passage of the Digital Asset Market Clarity Act through the Senate Banking Committee simultaneously moved prices and crowd sentiment. The move comes after the U.S. Senate Banking Committee advanced the CLARITY Act in a bipartisan vote of 15-9, marking an important market rescue. Submit the bill to the full Senate.
interestingly, Santiment’s data is as follows: Bitcoin’s social sentiment has moved back into FOMO territory. On May 15, Santiment’s social sentiment ratio for Bitcoin reached 1.55 bullish comments per 1.00 bearish comments, putting it in FOMO territory.
This figure reflects the previous high recorded on April 25, when the bullish-to-bearish ratio reached 1.58. Anytime the ratio of positive to negative comments on social media crosses this FOMO zone, it is an ideal moment to take profits.
This does not mean that Bitcoin should crash just because the crowd has become optimistic. The same Santiment chart shows that a better contrarian setup occurred on April 18th when the bullish-to-bearish ratio fell to 0.59. This left Bitcoin deep in FUD territory before it began its recovery.
Bitcoin ratio of positive to negative comments. Source: @SantimentData On
CLARITY Law Still Optimistic About Bitcoin In The Long Term
Caution about short-term sentiment does not cancel the decision. Long-Term Importance Clarity Act. The bill is designed to create a clearer federal framework for digital assets, including a clearer separation of powers between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The bill has been championed by major cryptocurrency companies, including Coinbase, Circle, and Ripple, who seek some degree of regulation of the cryptocurrency industry. Senior figures associated with these companies also reacted positively on social media after the Senate Banking Committee introduced the bill.
For example, Coinbase CEO Brian Armstrong said: stated in post on
The bill must still stand for a vote in the full Senate, which would require 60 affirmative votes. According to SoSoValue’s forecast, between mid-May and early August, the House recess will begin on July 27 and the Senate recess will begin on August 10.
If lawmakers fail to complete full Senate consideration and reconciliation before that period, the bill could be pushed deeper into the fall agenda, making passage difficult. It will rise significantly.
Clarity Act Legislative Process. Source: SoSoValue
Featured image from Unsplash, chart from TradingView
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