CLARITY Act Rejection
January 15, 2026
Let's start with what we got WRONG: We called for the CLARITY Act to pass Thursday, triggering a pump to $98K-$100K. It didn't pass. In fact, it got POSTPONED after Coinbase CEO Brian Armstrong NUKED the bill, calling it "materially worse than the status quo." Bitcoin pulled back from $97K to $95.5K. So are we fucked? HELL NO. Here's what actually happened—and why this is the BEST POSSIBLE outcome: The bill was GARBAGE. Armstrong exposed it publicly. Tokenized equities banned. DeFi restrictions. Government unlimited financial access. Stablecoin rewards killed. It was banks trying to RIG THE GAME. Coinbase walked. Kraken, a16z, Circle STAYED IN, committing to work on a BETTER bill. And here's the kicker: Bitcoin only dropped -2% on "bad" regulatory news. That's RESILIENCE. The $95K level is HOLDING like concrete. BlackRock just absorbed $646.6M in a SINGLE DAY (biggest inflow in 3 months). ETFs added $1.6B over two days. The market shrugged off the delay because smart money knows: A GOOD bill beats a RUSHED bill. And when the right legislation DOES pass? We're going PARABOLIC. This is a RELOAD moment, not a capitulation. 🎯
💣 SECTION I: THE CLARITY ACT IMPLOSION (Timeline)
Wednesday Jan 14, 4:00 PM: 🔥 BRIAN ARMSTRONG DROPS THE NUKE
Coinbase CEO tweets: "After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can't support the bill as written. We'd rather have no bill than a bad bill."
Armstrong's SPECIFIC Objections:
❌ De facto BAN on tokenized equities (kills RWA innovation)
❌ DeFi prohibitions giving government UNLIMITED access to financial records
❌ Erosion of CFTC authority (weakens the good guys)
❌ Draft amendments ELIMINATING stablecoin rewards (banks lobbying HARD)
Wednesday Jan 14, 9:00 PM: Senate Banking Committee POSTPONES Thursday vote
Chairman Tim Scott: "Everyone remains at the table working in good faith. Taking a brief pause before moving to markup."
Thursday Jan 15: No vote. Negotiations continue. No new date set.
RESULT: Bitcoin dipped from $97K Wednesday to $95.5K Thursday (-1.5%). Held $95K support. Regained $96K by afternoon.
🚀 SECTION II: WHY THE DELAY IS ACTUALLY BULLISH AF
💎 REASON #1: BAD BILL > NO BILL
Imagine if that trash bill PASSED. Tokenized stocks banned. DeFi crippled. Stablecoin yields killed. We would've been LOCKED IN to bad regulation for YEARS. Instead, Armstrong had the BALLS to blow it up publicly. Now we get to negotiate a BETTER bill. This is chess, not checkers.
💪 REASON #2: INDUSTRY UNITY (Mostly)
WHO WALKED:
• Coinbase (largest US exchange)
WHO STAYED:
• Kraken (co-CEO Arjun Sethi: "It is easy to walk away when a process gets difficult")
• a16z (commitment to bipartisan process)
• Circle (stablecoin issuer)
• Paradigm, Ripple, Coin Center, Digital Chamber
Translation: The industry is NOT giving up. They're REFINING the approach. Good cop/bad cop. Armstrong plays hardball. Others keep negotiating. BOTH strategies work.
🎯 REASON #3: BITCOIN'S PRICE ACTION = STRENGTH
Think about this: "Major regulatory catalyst FAILS" and Bitcoin only drops -2%? In 2022, that would've been a -10% bloodbath. In 2026? We BARELY FLINCHED. Why? Because the market is MATURE now. Institutional buyers aren't trading headlines. They're accumulating on fundamentals. BlackRock didn't pull $646M on Tuesday because of the CLARITY Act. They bought because Bitcoin is UNDERVALUED at $95K.
🏛️ REASON #4: Trump Crypto Czar Still BULLISH
White House Crypto Czar David Sacks tweeted AFTER the postponement: "Passage of market structure legislation remains as close as it's ever been. Now is the time to set the rules of the road and secure the future of this industry."
The WHITE HOUSE wants this done. It WILL get done. Just on a better timeline with better terms.
📅 REASON #5: More Time = More ETF Accumulation
Every day the CLARITY Act is delayed, BlackRock buys MORE Bitcoin. Every week of "regulatory uncertainty," institutions accumulate at DISCOUNT prices. When the bill DOES pass (and it will), we'll have even MORE institutional backing supporting higher prices. The delay is a GIFT.
📊 SECTION III: CURRENT BATTLEFIELD (Thursday 4PM EST)
BITCOIN - $95,500: The $97K Rejection (And Why It Doesn't Matter)
Price: $95,556 (down -1.39% from Wednesday high)
24h Range: $95,134 - $97,924
Volume: $24B (solid, NOT panic selling)
Key Level: HOLDING $95K like IRON
HERE'S THE SETUP: Bitcoin briefly touched $97,924 Wednesday morning (our target!), then got REJECTED when the CLARITY Act news hit. Pulled back to $95,134 low. But look what happened—INSTANT buying at $95K. No capitulation. No panic. Just DIPS GETTING BOUGHT. This is consolidation, not distribution.
TECHNICAL PICTURE:
✅ Still ABOVE EMA20 ($91,822)
✅ Still ABOVE 50-day MA ($88,200)
✅ RSI: 64.58 (healthy, NOT overbought)
✅ MACD: Still BULLISH, histogram positive
✅ Support levels: $94,611 (score 68/100), $90,000 (score 77/100)
⚠️ Resistance: $97,060 (89/100 score), $98,851 (72/100)
WHAT THE CHARTS ARE SAYING: We're in a "healthy correction within an uptrend." The $94K-$97K range is CONSOLIDATION, not reversal. Volume is holding. No divergences on RSI/MACD. Structure is INTACT. We just need a catalyst to break $97K. And when the GOOD version of CLARITY passes? BOOM.
ETHEREUM - $3,330: Quietly Holding Strength
Price: $3,329 (down -0.8% from highs, BUT above $3,300!)
Key Observation: ETH HOLDING $3,300 support despite BTC pullback
Relative Strength: ETH/BTC ratio stable = altcoin resilience
Ethereum didn't dump with Bitcoin. That's SIGNIFICANT. When ETH holds support during BTC pullbacks, it signals altcoin strength is REAL, not just momentum. Staking metrics still bullish (entry queue 2-year high). This is accumulation territory.
💰 SECTION IV: ETF FLOWS TELL THE REAL STORY
🔥 BLACKROCK JUST WENT FULL DEGEN
Tuesday Jan 14:
• BlackRock IBIT: +$646.62 MILLION (6,647 BTC)
• BIGGEST single-day inflow in 3 MONTHS
• Occurred BEFORE CLARITY Act news hit
Two-Day Totals (Jan 13-14):
• Total ETF inflows: +$1.6 BILLION
• FULLY OFFSET prior week's $1.3B outflows
LET ME BREAK DOWN WHAT THIS MEANS: BlackRock managing $12.5 TRILLION doesn't throw $646M at Bitcoin on a whim. They have CONVICTION. They see value at $95K-$97K. They don't care about short-term CLARITY Act drama. They're positioning for $150K+. When the world's largest asset manager is buying your dip, you should be too.
CURRENT ETF LANDSCAPE:
• BlackRock IBIT: $75.5B AUM (773,000 BTC)
• ETFs collectively hold >6.5% of Bitcoin's circulating supply
• 2-year cumulative ETF volume: >$2 TRILLION
• Options Open Interest: $65B (surpassed futures for first time)
CRITICAL INSIGHT: ETFs now control 1.3 MILLION BTC. That's permanent BID. Those coins aren't being day-traded. They're sitting in pension funds, 401Ks, institutional portfolios. Supply SHOCK building in real-time.
🎯 SECTION VI: REVISED OUTLOOK (Next 7-14 Days)
NEW BASE CASE (60%): CONSOLIDATION → BREAKOUT
Friday-Monday (Jan 16-19):
• Bitcoin consolidates $94K-$97K range
• Volume declines (typical weekend behavior)
• Ethereum holds $3,250-$3,400
Week of Jan 20-26:
• CLARITY Act negotiations progress (bipartisan talks ongoing)
• Revised bill draft circulates (incorporating Armstrong's feedback)
• BlackRock continues accumulation ($500M-$1B weekly)
• Bitcoin breaks $97K on renewed optimism
• Target: $98K-$100K by end of month
The timeline SHIFTED, but the destination DIDN'T. We're still going to $100K. Just takes 2-3 more weeks instead of 2-3 days. Patience = Profit.
BULL CASE (25%): REVISED BILL PASSES QUICKLY
Mike Novogratz (Galaxy Digital CEO): "It will get done soon. I've talked to 10+ Senators from both parties. Everyone is working to get it done." IF revised bill gets fast-tracked and passes within 10 days → Bitcoin EXPLODES to $100K-$105K. Market has been COILING for weeks. Regulatory clarity = FOMO trigger.
BEAR CASE (15%): Extended Consolidation
Negotiations drag into February. Bitcoin ranges $92K-$96K for another month. Altcoins get CRUSHED. BUT even in this scenario, we're NOT going lower. $90K support is CONCRETE (whale bids stacked). Worst case = boring sideways, not crash.
💰 SECTION VII: UPDATED TRADING PLAN (Risk Management)
CURRENT POSITIONS:
BITCOIN:
• Entry: $90K-$92K
• Current: $95,500 (+3.8% to +6.1% depending on entry)
• Trailing Stop: $93,500 (LOWERED from $94.5K for breathing room)
• Size: 40% (HOLD)
ETHEREUM:
• Entry: $3,100-$3,200
• Current: $3,330 (+4.1% to +7.4%)
• Stop: $3,200 (LOWERED from $3,250)
• Size: 35% (HOLD)
WHAT TO DO NOW:
IF YOU'RE ALREADY IN:
✅ HOLD your positions (we're still up)
✅ Lower stops to $93.5K (BTC) and $3,200 (ETH) for more room
🐦 SECTION VIII: WHAT SMART MONEY IS SAYING
1. Mike Novogratz (@novogratz) - Galaxy Digital CEO:
"Although the crypto bill has been delayed, I strongly believe it will get done soon. I've communicated with 10+ Senators from both parties. All are making efforts. This is part of the tense, final stages of lawmaking."
OUR TAKE: Wall Street veteran with access to actual Senators. If he's confident, we should be too.
2. Brian Armstrong (@brian_armstrong) - Coinbase CEO:
"We appreciate all the hard work by members of the Senate to reach a bipartisan outcome, but this version would be materially worse than the current status quo. We'd rather have no bill than a bad bill. Hopefully we can all get to a better draft."
OUR TAKE: Armstrong is RIGHT to fight for a good bill. This delay SAVES us from bad regulation.
3. Arjun Sethi (@arjunsethi) - Kraken Co-CEO:
"It is easy to walk away when a process gets difficult. I and Kraken remain fully committed to supporting Chairman Tim Scott's efforts to advance the market structure bill. It has taken many years of sustained bipartisan work to get to this point."
OUR TAKE: Kraken staying at the table = good cop to Coinbase's bad cop. Both strategies needed.
4. David Sacks (@DavidSacks) - White House Crypto Czar:
"Passage of market structure legislation remains as close as it's ever been. Now is the time to set the rules of the road and secure the future of this industry."
OUR TAKE: THE WHITE HOUSE wants this. Trump administration backing = it WILL happen.
5. Senator Tim Scott (@SenatorTimScott) - Banking Committee Chair:
"I've spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith. This bill reflects months of serious bipartisan negotiations."
OUR TAKE: Bipartisan support intact. This is a PAUSE for refinement, not cancellation.
🤖 BONUS: THE MOST INSANE CRYPTO/AI NEWS THIS WEEK
🚨 DASH PUMPS +40% AND NOBODY KNOWS WHY
While everyone was watching Bitcoin and the CLARITY Act drama, the privacy coin Dash EXPLODED +40.45% in 24 hours to become the #1 gainer in the top 200. Current price: $82.34. The kicker? NOBODY CAN EXPLAIN WHY. No news. No partnerships. No announcements. It just... pumped. Crypto Twitter theories range from "whales front-running privacy regulations" to "AI bots gone rogue" to "someone fat-fingered a buy order." Meanwhile Monero is still at ATH ($686), so maybe privacy coins are just the trade right now? Or maybe Dash holders have been in a coma since 2017 and just woke up. Either way, if you made 40% overnight on DASH, congrats you beautiful degenerate. The rest of us are just confused.
Pro tip: When coins pump 40% with no catalyst, it's either (A) insider trading, (B) whale manipulation, or (C) the simulation glitching. Pick your favorite conspiracy theory. But hey, in crypto, sometimes the best trades are the ones you DON'T understand. 🤷♂️
We called for $100K this week. We didn't hit it. The CLARITY Act postponement shifted the timeline. But here's what DIDN'T change:
✅ Bitcoin is STILL in an uptrend (above all major MAs)
✅ BlackRock is STILL accumulating ($646M in one day)
✅ ETFs STILL added $1.6B in 48 hours
✅ $95K support is STILL holding like concrete
✅ Regulatory clarity is STILL coming (just better version)
✅ Our positions are STILL profitable (+3-6% from entries)
The delay is frustrating. But it's NOT bearish. It's SMART. Armstrong prevented a trash bill from passing. Now we get to negotiate terms that DON'T ban tokenized equities, DON'T kill DeFi, and DON'T give government unlimited access to your money. That's a WIN.
This is a CONSOLIDATION phase. Use it to accumulate. Use it to position. When the revised CLARITY Act passes (and Mike Novogratz says it will), we're going to EXPLODE past $100K faster than you can blink. The setup is PERFECT. The fundamentals are SOLID. The only thing missing is PATIENCE.
We're not chasing. We're not panicking. We're ACCUMULATING. See you at $100K. It's coming. Just on OUR terms, not theirs. 💎🙌🚀
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DISCLAIMER: This newsletter provides market analysis and trading intelligence for informational and educational purposes only. It is NOT financial advice. Cryptocurrency trading carries substantial risk of loss. Past performance does not guarantee future results. Always conduct your own research, understand the risks, and never invest more than you can afford to lose. The Rekt Reports and its authors are not registered financial advisors. Trade responsibly.
