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U.S. fiscal concerns and digital-asset legislation news have emerged as separate forces in the Bitcoin market. Senator Cynthia Lummis has linked Bitcoin to the country’s $39.2 trillion national debt. Now, the Digital Asset Market CLARITY Act remains subject to significant procedural and policy hurdles in the Senate.

Bitcoin posted a 22% weekly gain after Treasury yields fell following a Treasury intervention in the bond market. The move into crypto was later amplified by a short squeeze, with CoinGlass data showing $2.7 billion in crypto short positions liquidated.

CNBC also reported that concern about U.S. debt levels and borrowing costs was part of the market backdrop. The report described the Treasury’s decision to double its buybacks of long-dated government debt as an effort aimed at long-term yield concerns, while noting that Bitcoin remained below its 2026 high and its all-time high despite the rally.

The same report said investor sentiment improved amid a late effort by the White House and crypto industry leaders to advance the CLARITY Act. It characterized the bill as a potential market catalyst, while saying its prospects for passage appeared relatively slim.

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Lummis Links Debt Concerns to the CLARITY Act

On June 15, Senator Cynthia Lummis publicly tied Bitcoin to America’s $39.2 trillion national debt crisis. The report said she presented Bitcoin as a potential hedge against currency debasement for younger Americans who will inherit the effects of decades of deficit spending.

Lummis has argued that Bitcoin’s fixed supply makes it structurally distinct from sovereign debt instruments. According to the report, she described the U.S. fiscal trajectory as unsustainable and said Bitcoin could help address the consequences for younger Americans. She also acknowledged that the legislative timetable remained uncertain.

The Clarity Act would establish a jurisdictional division between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Under the framework described in the primary report, the SEC would oversee digital-asset securities and new token offerings, while the CFTC would have jurisdiction over spot digital commodities, including Bitcoin and Ethereum.

The legislation would also create registration frameworks for exchanges, brokers, and custodians. Its provisions include capital-segregation requirements, protections for software developers publishing code, and a rule giving exchange customers first claim on custodial assets in bankruptcy.

For tokens that operate in regulatory ambiguity, the proposed activity-based test would determine whether sufficiently decentralized assets fall under CFTC oversight as digital commodities. The bill would also ban passive stablecoin yield products while protecting activity-based platform usage rewards.

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News on Senate Obstacles Remain as Bitcoin Stabilizes

Galaxy Research put the probability of the CLARITY Act becoming law in 2026 at 60–75%, according to the primary report. But the White House’s July 4 signing target faced pressure from unresolved ethics provisions, competing House and Senate versions that require reconciliation, and the Senate’s 60-vote cloture threshold.

The House and Senate versions also differ over the SEC–CFTC balance. The Senate Banking discussion draft gives the SEC primary authority over ancillary assets and calls for joint SEC–CFTC rulemaking on margining and disclosures, while the House version is described as more CFTC-forward.

Despite the news, Bitcoin is still trading at around $80,000, with BTC holding near the key psychological level after briefly climbing above $80,000. The move keeps Bitcoin firmly in its recent uptrend, although the $80,000 to $82,000 area remains an important resistance zone after its three-month high.

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The post Bitcoin News: Debt Hedge Case Meets Senate Roadblocks for CLARITY Act appeared first on Cryptonews.

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Kansas City Federal Reserve President Jeffrey Schmid said Thursday that inflation is still too high, though he stopped short of calling for an interest rate hike.

Speaking from the central bank’s annual symposium in Jackson Hole, Wyo. that the Kansas City Fed hosts, Schmid said in a CNBC interview that inflation has proven resilient.

“It’s still stubborn and it’s still sticky, and we’re we’ve got to continue to find ways to break through,” he said on “Squawk Box.” “We’re going to have our work cut out for us as we move into the [Federal Open Market Committee] cycle.”

The comments came the day after the Commerce Department reported that the Fed’s primary inflation gauge showed core prices, which exclude food and energy, rose 3.3% from a year ago, well above the central bank’s 2% target.

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Coupled with an economy that grew at 1.5% in the second quarter and an unemployment rate sitting at 4.1%, Schmid said it’s not clear that the Fed’s current policy rate target of 3.5%-3.75% is restrictive.

“I don’t know what we’re restricting currently with the rate policy that we’re at today,” he said. “I do know moving the rate does change behaviors in the market in a macro level market.”

Schmid does not vote this year on the FOMC, though he still gets to express his views at meetings. When he was a voter last year, he twice dissented against rate cuts.

However, he said he is not sure whether he would support a rate increase now.

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“I think we need a little bit more information. What I’m trying to figure out is the demand side of what’s driving both growth and inflation,” Schmid said.

Separately, Schmid said he sees “some room” to consider an idea that Chairman Kevin Warsh raised in July to reduce the number of FOMC meetings per year to six from the current eight.

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BTC held its ground Thursday as spot bitcoin ETFs logged an eighth straight day of net inflows, while altcoins drifted lower across the board.

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Bitfinex Securities completed a record $50 million raise for Alkemya, whose token represents interests in a partnership that holds nickel assets.

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The abandoned bids would have cost over $2 million in base fees alone, leading the firm to prioritize financial viability over broader internet adoption.

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Bitcoin (BTC) has pushed its daily relative strength index (RSI) above 85, a level crypto analyst Sykodelic says has never appeared during a bear market, after the asset reached above $81,000 this week.

The reading is being used to argue that the latest rally looks more like the opening of a new uptrend than a temporary bear-market bounce.

Bitcoin’s RSI Breaks a Historical Pattern

In a post on August 27, Sykodelic pointed to Bitcoin’s 10-year price history and argued that every time the daily RSI moved above 85, it either came near the top of a major uptrend or appeared at the beginning of one.

“Never in Bitcoin’s history has it ever tagged 85+ in a bear market,” the analyst wrote. “Even when Bitcoin was worth $10 in 2011 there was not a 1D RSI reading of 85+ in a bear market.”

However, he did acknowledge that the current move could become the first exception, but added, “But I doubt it.”

The analyst later described the price action as “vertical accumulation,” saying the current structure resembles November 2024, the last time Bitcoin’s daily RSI reached 85. The pattern starts with a move into overbought territory, followed by a rally that gives traders few entries. Price then works through resistance without large pullbacks, with a higher continuation while “everyone expects it to drop again.”

Derivatives activity has also picked up. Arab Chain reported earlier today that Bitcoin open interest on Binance reached about $9.54 billion, its highest level in three months, showing a clear return of activity and liquidity to the futures market.

According to the market watchers, an uptick in open interest coming at the same time that price is increasing could be a reflection of “growing confidence in the bullish trend.” However, it also raises liquidation risk if BTC reverses.

The Bull-Cycle Case Still Needs Confirmation

CryptoQuant recently offered a more cautious reading in an update published August 25, which showed its Bull Score had risen from 30 to 80, with eight out of 10 indicators in bullish territory, while apparent spot demand posted its fastest monthly increase since late December 2025. Spot and futures demand also rose together for the first time since early October of the same year.

CryptoQuant nevertheless set a condition for confirmation: Bitcoin needs a daily close above its 365-day moving average, currently near $83,000.

BTC’s rejection after crossing $81,000 also added another wrinkle, with the price falling by roughly $3,000 from that local high but remaining more than 22% higher on the week at the time.

The OG crypto was trading near $79,000 at the time of writing, having barely changed in 24 hours but still up nearly 14% in seven days, with a range stretching from about $69,000 to $81,000 in that time. Its 30-day gain stood at roughly 24%, but Bitcoin is still almost 38% below its October 2025 record of just over $126,000.

The post Bitcoin’s RSI Has Done This Only Near Major Bull Runs: Analyst appeared first on CryptoPotato.

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