Bitcoin (BTC) and Ripple (XRP) price face volatility as the CLARITY Act enters a make-or-break week. Several US legislators, including US House Chair Bryan Steil, have said that the bill will go to the Senate floor this week, but Senate Democrats continue to raise concerns around ethics rules and stablecoin yield.
If the bill passes, it will become the second most important crypto-specific legislation to pass in the US after the GENIUS Act, and that could drive gains for Bitcoin and XRP.
However, if Senate Democrats shoot down the bill, Bitcoin and XRP prices could slip amid warnings that failure to pass this bill now could delay it until 2030 because of the November midterm elections.
CLARITY Act Text to Come Out This Week Ahead of Floor Vote
A former commissioner at the CFTC, Summer Mersinger, recently said that the US Senate might vote on the CLARITY Act bill in the week between July 20 and July 25.
Mersinger’s remarks come shortly after the US House Chair of the Administration Committee said that the US might set the gold standard for crypto regulations if it votes on and passes the CLARITY Act this week.
Still, Senator Elizabeth Warren is rallying Democrats against this bill, saying that President Trump needs to first disclose the amount of crypto that he holds before they can vote on the CLARITY Act.
But even if the Senate does not vote on it this week, the final text of this bill is still coming out between July 20 and July 24, and this might also affect the price of Bitcoin and XRP, depending on the changes made.
Bitcoin Price Prediction Ahead of Potential CLARITY Act Vote
Bitcoin price is down by 0.7% today, July 20, to trade at $64,180 at the time of writing. The decline comes as XRP price also drops despite US Secretary of State Marco Rubio saying the US and Iran might resume peace talks.
Despite the drop, Bitcoin price is still moving in a rising parallel channel, to suggest that the momentum is favoring bulls.
The midline of this channel also coincides with the 50-day EMA at $65,002. If Bitcoin can close above this EMA, it could move to the 100-day EMA of $68,000.
However, if Bitcoin moves below the lower boundary of this channel, it might drop to the psychological support of $60,000.
The CMF reading of 0.12 supports a bullish long-term Bitcoin price prediction because it shows that the buying pressure is more than the selling pressure despite the recent drop.
XRP Price Hovers Near Key Support Despite Crypto Bill Optimism
The price of XRP is defending the support of $1.08. It has traded above this support since July 14, suggesting that this might be the price at which buyers are scooping more coins.
If XRP loses this support, it might drop to the June 26 low of $1. This drop might occur if the Senate fails to pass the CLARITY Act bill this week.
But the AO bars that are green suggest that bears are losing their grip, and XRP might not only hold the support of $1.08 but also bounce to the July 4 high of $1.18 if buyers come back.
Still, the ADX line is dropping, and this usually suggests that the trend is weak, and the price of XRP might remain near the support at $1.08.
XRP might resume a strong upward trend if the CLARITY Act bill passes after it goes to the Senate floor for voting.
Bitcoin and XRP ETFs Resume Inflows as Institutional Demand Returns
Data from SoSoValue shows that XRP ETFs had $6.78 million in inflows in the week between July 13 and July 17.
Bitcoin ETFs also saw $75.67 million in inflows during the week. That marked the second straight week of inflows for Bitcoin ETFs.
The flows suggest that institutional demand for Bitcoin and XRP ETFs is returning as the crypto market recovers following a drop in US inflation that boosted demand for risk assets.