Bitcoin Rallies on Trump Clarity Act Support and ETF Inflows

Range breakout confirmed above $70K barrier

The crypto market saw a rebound this week, with Bitcoin leading the charge and posting significant gains on Monday and Wednesday. Among the reasons for the recent surge, short liquidations played a big part, but also pro-crypto commentary from President Trump, who took a swing at banks for delaying the Clarity Act.

Almost half a billion dollars in short positions were liquidated on Wednesday, creating a snowball effect and amplifying upside movement. Bitcoin spot ETFs came back to life this week, with inflows of $458 million, $225 million, and $461 million on the first three days of the week, respectively, according to Coinglass data.

But probably the main driver was President Trump, as he took a swing at bankers. On a TruthSocial post, he said “The Genius Act is being threatened and undermined by the Banks, and that is unacceptable — We are not going to allow it.”, showing a clear pro-bill stance.

The President continued by saying that “Americans should earn more money on their money,” referring to the stablecoin friction point between bankers and the crypto industry. The main disagreement and reason why the Clarity Act did not make significant advances is the yield on stablecoins. Bankers say that if crypto companies offer rewards to their customers, this would create a deposit flight. In other words, if clients would make more money by having their stablecoins deposited on a crypto exchange, why would they go to the bank and keep their money there?

It’s unclear whether banks and cryptocurrencies can reach common ground on the matter, but thus far, Trump’s clear support of the crypto industry is boosting Bitcoin’s price.

Chart Analysis – BTC/USD

On Wednesday, Bitcoin barely touched $74K and managed to close a strong daily candle above $71K resistance. This may very well be a true breakout, marking an end to the range-bound price action.

Soon after descending below $60K, Bitcoin rebounded and then remained between $65K and $71K. It first entered this range in early February, so we’ve had almost a full month of sideways action. That means that the current breakout is a big deal for the bulls. Also, as the order books are heavy on sell orders, quick moves up can trigger stop losses, adding more buying pressure.

The next bullish scenario destination is the resistance zone around $77K, but we cannot rule out a re-test of the broken resistance at $71K If that level turns into support, the chances of a sustained rally will increase.