Bitcoin Rebounds Above $80K as Traders Bet on CLARITY Act Momentum

Bitcoin's price has seen a resurgence above $80,000 after experiencing a brief dip due to various market factors. According to recent data, Bitcoin's 30-day realised cap net position change recently climbed to $2.8 billion per month, indicating that fresh capital is still entering the market.

The analytics firm Glassnode highlighted that weaker inflows have raised questions about whether Bitcoin can sustain a move above the $80,000 to $82,000 range. Additionally, US-listed spot Bitcoin ETFs recorded roughly $635.23 million in net outflows on May 13, the largest single-day withdrawal since January.

Traders interpreted the recent inflation data as a sign that the Federal Reserve may keep interest rates elevated longer than previously anticipated, reducing appetite for speculative assets. The technical level of Bitcoin's 200-day moving average has also been a point of contention, with buyers struggling to maintain momentum above the psychological $80,000 mark.

The market stress was further exacerbated by long liquidations in derivatives markets, with around $370 million in crypto positions being liquidated over the past 24 hours. Bitcoin researcher Axel Adler Jr. noted that the 30-day net taker volume indicator has fallen from +2.0 on May 6 to +1.25 this week, indicating fading buyer aggression.

However, institutional demand for Bitcoin remains strong, with spot Bitcoin ETFs attracting more than $1 billion in net inflows over the past week. The progression of the CLARITY Act in Washington could potentially improve institutional confidence in the crypto sector and help Bitcoin gain momentum above $80,000.