Bitcoin Price Rally Depends on US Policy Clarity and Interest Rate Cuts

Galaxy Digital CEO Mike Novogratz believes that Bitcoin's next major rally is contingent upon two key factors: the passage of the CLARITY Act and a shift toward lower interest rates by the U.S. Federal Reserve.

The proposed legislation, aimed at establishing clearer definitions for digital assets and regulatory oversight, could serve as a significant catalyst for renewed investor confidence and capital inflows into the crypto sector.

Novogratz emphasized that until the Federal Reserve begins cutting rates, Bitcoin may struggle to break out of its current trading range, which has been constrained by uncertainty surrounding U.S. regulation and interest rate decisions.