Traders are looking at the CLARITY Act, with some analysts saying that action on the bill could help Bitcoin reach $68,000.
- Risk appetite in crypto markets improved when President Trump extended the pause on strikes against Iran, with Ethereum and Hyperliquid outperforming Bitcoin.
- Brent crude fell nearly 9%, and the DXY slipped 0.2% as falling oil prices and a weaker U.S. dollar added to the bullish backdrop.
- Amid growing institutional interest, Hyperliquid has been on a rally, with Multicoin Capital recently projecting significant upside for the token.
Ethereum (ETH) and Hyperliquid (HYPE) led gains on Monday, outpacing Bitcoin (BTC) as the broader market turned green after President Donald Trump’s pause on strikes against Iran reached its third day. Traders are turning their focus to Washington, where the CLARITY Act could become the next major catalyst for digital assets this week.
Ethereum’s price rose by 4%, while HYPE’s price climbed over 3% over the past 24 hours, outperforming Bitcoin’s price, as the apex cryptocurrency was up only over 1% during the past 24 hours. On Stocktwits, the retail sentiment around BTC moved to ‘bearish’ from ‘neutral’ while chatter around it remained in the ‘low’ levels over the past day.
In comparison, on Stocktwits, the retail sentiment around ETH remained in the ‘bullish’ zone, while chatter around it stayed at the ‘normal’ levels over the past day. Meanwhile, retail sentiment around HYPE remained in the ‘bearish’ zone, while chatter around it shifted to ‘high’ from ‘normal’ levels over the past day.
On Stocktwits, one user said that the bottom was over for Bitcoin.
Oil Drops, Dollar Weakens As Iran Strike Pause Holds
Reports indicate that this extension on the strike pause follows 13 consecutive nights of U.S. bombing. UN Ambassador Mike Waltz said on Sunday that Trump was “giving some talks some space,” though the administration warned it remained “locked and loaded.”
Additionally, Brent oil fell nearly 9%, while crude oil dipped by 7.83% per barrel, as the U.S. Dollar Index (DXY) slipped 0.2% on Monday.
Bull Case Builds For HYPE And ETH
Hyperliquid’s outperformance also fed into the growing institutional focus on the decentralized exchange. Multicoin Capital published a detailed valuation for HYPE, projecting the token could hit $319 by 2028.
According to the firm, the market was undervaluing Hyperliquid by treating it as a perps exchange, a platform limited to perpetual futures trading, rather than the full-stack exchange it was building, which spanned spot trading, derivatives, native token launches, and on-chain infrastructure.
Wall Street is eyeing tokenization and the CLARITY Act, and Tom Lee, co-founder of Fundstrat, said crypto “has one of the best risk/rewards into year-end,” adding he thinks crypto is “a downstream story of AI.” He commented on analyst Ted Pillow’s post that cited a $3,200 target as per options market for Ethereum by the end of the year.
Big Week For Crypto Markets With CLARITY Act Passage Ahead
The crypto rally also came ahead of a make-or-break week for digital asset regulation.
Analyst TedPillows added that any progress on the Digital Market Asset Clarity Act, also known as the CLARITY Act, which could see its first Senate vote as soon as this week, could push Bitcoin toward $68,000. He also pointed out the ETH/BTC ratio had broken out on the three-day chart.
More Democrats were trending toward a ‘yes’ vote on the bill, crypto market commentator Paul Barron said, bringing the bill closer to the 60-vote threshold needed to pass. But he pointed to prediction markets that still priced the overall odds of the CLARITY Act passing at just 38%.
At the same time, Circle (CRCL), the issuer of USDC, minted another 250 million USDC on the Solana (SOL) blockchain in a deal valued at around $250 million.
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