Recently, the bitcoin market has once again become the focus of investors' attention. As discussions around the CLARITY Act scheduled for December 20, 2025 heat up, the market landscape is becoming increasingly complex in an instant. Although the Act aims to provide a clear regulatory framework for crypto assets, real-time market sentiment is growing more tense, especially against the backdrop of continued tightening of macro liquidity.
Clash of Opinions
During the discussions of the CLARITY Act, the stances of different parties form a sharp contrast. Veteran trader Peter Brandt mentioned: “The positive significance of the CLARITY Act is that it will greatly clarify the regulatory structure of crypto assets.” He emphasized the potential legitimizing effect the Act could have on the future of the industry. On the other hand, Ledn Chief Investment Officer John Glover warned: “The potential passage of the CLARITY Act has already been priced in by the market,” putting investors in a double bind when evaluating bitcoin prices. Market hesitation and liquidity deadlock are intertwined, with short-term bearish expectations on the rise.
The Shadow of Regulation
The regulatory “Sword of Damocles” still hangs overhead, so why does the market continue to display a fearless attitude? The slow progress of authorities in crypto asset governance stands in stark contrast to investors’ expectations for the future market. As a moral benchmark, Coinbase has recently been thrust into the spotlight again due to its involvement in a fraud case, pushing industry security issues to the forefront. The case, involving as much as $16 million, has attracted widespread attention. Police investigations have seized $105,000 in cash and $400,000 worth of crypto assets. This has undoubtedly laid the groundwork for the market to enter a “FUD” (Fear, Uncertainty, Doubt) mood. Nevertheless, traditional investment logic still seems to be weighing the potential for long-term gains.
As the regulatory framework gradually takes shape, whale counter-moves have reinvigorated market confidence. In the current situation, investors are adopting a cautious attitude, tending to view short-term fluctuations as a sign of market maturity rather than panic-induced losses. Against this backdrop, large institutional investors are gradually showing optimism. Coinbase’s recent 2026 market forecast indicates that the entire crypto environment will become more like 1996, with the market focus shifting to a “DAT 2.0” model, emphasizing transactions and storage of sovereign block space.
Choices Under Economic Pressure
The market’s liquidity situation is also not to be underestimated. Currently, as the Federal Reserve continues to tighten monetary policy, the market’s capital chain is becoming increasingly strained. Many market analysts see this phenomenon as the fundamental reason for the short-term depreciation of bitcoin prices. Analysts state: “Loose liquidity would require nuclear-level money printing; in the short term, we are bearish on bitcoin.” In this context, as new and old forces clash, market participants are forced to conduct risk assessments.
In addition, as the CLARITY Act progresses, on one hand, it will promote the standardization of the crypto industry. As advocated by Peter Brandt, the gradual clarification of regulations will help guide capital inflows and form a long-term positive cycle. On the other hand, short-term market volatility during the industry reshuffle will have a profound impact on investor psychology. Investors need to have a long-term vision to identify opportunities that flow in turbulent times.
The Fragility of Investor Confidence
As the Coinbase fraud case continues to ferment, concerns about security within the industry are spreading. This is not only about controlling the perpetrators of the crime, but also a wake-up call for the entire market ecosystem. To some extent, this incident has distorted investors’ confidence in crypto assets. The community’s lack of a strong response may instead trigger more “FUD” among investors. However, there is still a glimmer of hope in the market, and this is precisely the possibility brought by regulatory legislation.
Future Outlook
Looking ahead, as the clash between power and ideology intensifies, the industry stands at a historic crossroads. “In the future, compliance and institutionalization will become the main theme.” This view is supported by many investors. Although in the short term the market still needs to pay attention to key positions, behind all the panic may lie rare opportunities for strategic positioning. The trend toward institutionalization may bring new vitality to the crypto market, fundamentally changing participants’ investment strategies.
In the long run, as the regulatory model gradually takes shape, it is highly likely to attract larger-scale capital inflows into the entire market. Many investors are planning to make active and rational arrangements based on the overall healthy market sentiment, with the ultimate goal of achieving long-term returns and consolidating a sustainable investment niche.
In summary, amid this sweeping market transformation, whether bitcoin can stage a comeback and reshape the meaning of the era will depend on the dual impact of regulation and liquidity. The future direction of the market ecosystem remains an important issue that every investor urgently needs to pay attention to.
