The landmark committee approval of the CLARITY Act sent Bitcoin sentiment to its highest level in months.
Data from Santiment shows that bullish comments for Bitcoin on social media have risen to one of the greediest readings of the year, with 1.55 bullish comments for every 1.00 bearish comments. However, on-chain data indicates that the crowd You may come forward itself.
Bitcoin sentiment points to greed after Clarity Act vote
The passage of the Digital Asset Market Clarity Act through the Senate Banking Committee moved prices and crowd psychology simultaneously. The move came after the US Senate Banking Committee advanced the CLARITY Act on a bipartisan vote of 15 to 9, sending the important market structure… The bill goes to the full Senate.
Interestingly, Santiment data are shown Bitcoin social sentiment has returned to FOMO territory. On May 15, Santiment’s social sentiment ratio for Bitcoin reached 1.55 bullish comments for every bearish comment of 1.00, putting it within the FOMO zone.
This reading mirrors the previous peak on April 25, when the up-to-down ratio reached 1.58. Any time the ratio of positive to negative comments on social media crosses the FOMO zone, it’s a temporary perfect moment to take profits.
This does not mean that Bitcoin should collapse because the public has become optimistic. The same Sentiment chart shows that the best contrarian setup came on April 18, when the bullish-to-bearish ratio fell to 0.59. This was deep into FUD territory, before Bitcoin made a recovery.
Bitcoin ratio of positive comments versus negative comments. Source: @SantimentData on X
CLARITY LAW remains bullish for Bitcoin in the long term
Caution about short-term sentiment does not cancel Long term importance The law of clarity. The bill is designed to create a clearer federal framework for digital assets, including a more defined division of authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The bill was backed by major cryptocurrency companies, including Coinbase, Circle, and Ripple, all of which sought a degree of regulation of the cryptocurrency industry. Senior figures associated with these companies also reacted positively on social media after the Senate Banking Committee advanced the legislation.
For example, Coinbase CEO Brian Armstrong. Came in on the job On
The bill still needs to be available for a vote by the full Senate, which would require 60 yes votes. SoSoValue forecasts show a key window between mid-May and early August, with the House recessing on July 27 and the Senate recessing on August 10.
If lawmakers fail to complete full Senate consideration and reconciliation before that period, the bill could be pushed deeper into the fall agenda, making it more difficult to pass. It will rise significantly.
The Legislative Process of the Clarity Act. Source: Soso Value
Featured image from Unsplash, chart from TradingView
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