Prominent Trader: Bitcoin Digests Rate Hikes and CLARITY Act Setback, Market Trend May Have Shifted

Prominent trader Killa said the "everything is priced in" chart records major catalyst events across Bitcoin's cycles and the price performance after each event. He believes that during bear market phases, negative news typically pushes BTC lower, conditioning traders to "short on bad news"; but when the higher timeframe trend turns, the same news may only cause brief panic before Bitcoin absorbs the selling pressure and resumes its uptrend. Recently, the market has experienced Fed rate hikes, expectations of a vote on the CLARITY Act, and the bill's failure to advance—events the market once viewed as reasons for further Bitcoin declines—yet BTC only briefly dipped below range lows before quickly rebounding and showing notable resilience. Even as "World War III" narratives heat up, Bitcoin has begun to react relatively positively to panic-inducing factors. Killa argues this is a key distinction between bull and bear markets: in bear markets, negative news drives prices down, while in bull markets, negative news may prompt trader capitulation before prices continue higher. Killa noted that last cycle, the key catalyst confirming trend continuation was the spot Bitcoin ETF approval, while a similar catalyst this cycle could be the CLARITY Act. Bitcoin's recent ability to digest multiple negative events is, in his view, important evidence that the trend has shifted.