Prominent Trader: Bitcoin Has Successively Absorbed Rate Hikes and the Stalling of the CLARITY Act, Market Trend May Have Already Shifted

BlockBeats news, September 20 — Renowned trader Killa stated that the "everything is priced in" chart documents the major catalytic events across Bitcoin's various cycles, as well as the price performance following those events. He believes that during bear market phases, negative news typically drives BTC to continue falling, gradually conditioning traders into a habit of "shorting on bad news"; but once the higher timeframe trend reverses, the same news may only cause brief panic, after which Bitcoin absorbs the selling pressure and continues to rise.

Recently, the market has successively experienced the Federal Reserve's rate hike, expectations for a vote on the "CLARITY Act," and the bill's failure to advance. The market at one point treated these events as reasons for Bitcoin to fall further, but BTC only briefly broke below the range low before quickly rebounding and demonstrating strong resilience. Even as "World War III" related narratives heated up, Bitcoin also began to react relatively positively to panic factors in terms of price.

He believes this performance is an important distinction between bull and bear markets: in a bear market, bad news pushes prices down, while in a bull market, bad news may prompt traders to capitulate, after which prices continue to rise. Killa said that the important catalyst confirming the continuation of the trend in the previous cycle was the approval of spot Bitcoin ETFs, and the similar catalyst in this cycle may be the "CLARITY Act." Bitcoin's recent ability to digest multiple bearish factors is an important basis for his judgment that the trend has already shifted.