19.01.202613:26 Forex Analysis & Reviews: Crypto market somehow settles down

Bitcoin has partially recovered after a sharp crash caused by actions from the White House. Meanwhile, the story around the CLARITY bill remains under close market scrutiny, as it is currently the only real catalyst that could reshape the balance of power in the sector.

Today, Eleanor Terrett — a journalist and co?host of the Crypto In America podcast — said the White House plans to fully withdraw support for the CLARITY Act on crypto-market structure if Coinbase does not return to the negotiating table with an agreement on yield?bearing stablecoins that satisfies banks and allows a deal to be reached. Terrett's statement triggered concern and speculation across the crypto community. The CLARITY Act, initially seen as a potential step forward toward clear rules for the US crypto market, now risks collapse over the issue of yield?bearing stablecoins. The crux of the problem is that the White House apparently seeks a balance between supporting innovation in digital assets and protecting the interests of traditional financial institutions.

The White House position, as described by Terrett, indicates they view cooperation with Coinbase as key to reaching a compromise. Coinbase's refusal to participate in the talks is seen as an obstacle to creating a regulatory framework acceptable to all stakeholders. The ultimatum essentially forces Coinbase to choose: either return to negotiations and make concessions, or risk losing White House backing for the CLARITY Act altogether.

The consequences of such a development could be far?reaching. If the CLARITY Act is not passed, the US crypto market could remain in a regulatory gray zone, hampering industry development and investment attraction. Moreover, it could set a precedent for political pressure being used to influence the decisions of individual companies in the digital?asset space.

At present, it is unclear how Coinbase will respond to the statement. The company has so far declined to comment. But it is obvious that the stakes are high, and Coinbase's decision will affect not only its own future but also the future of the US crypto market as a whole. Further developments will depend on whether Coinbase can find common ground with the White House and how quickly.

Interestingly, last week, the Senate failed to hold a session to consider amendments to the bill that would generally split oversight of digital assets between the CFTC and the SEC. However, many US senators still support CLARITY and believe passage of the bill is necessary. According to reports, hearings in the Senate committee have now been postponed to the end of the month.

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $94,000, which opens a direct path to $95,800 and then to $97,600. The farthest target is the high near $99,400; breaking that would signal attempts to return to a bull market. In case of a decline, buyers are expected at $92,100. A move back below that area could quickly push BTC toward $90,500. The farthest downside target is $88,700.

Ethereum

A clear hold above $3,257 opens a direct path to $3,340. The farthest target is the high near $3,426; surpassing that would indicate strengthening bullish sentiment and renewed buyer interest. In case of a decline, buyers are expected at $3,192. A move back below that area could quickly push ETH toward $3,129. The farthest downside target is $3,072.

Chart indicators

• Red indicators represent support and resistance levels, where a slowdown or active price increase is expected.
• Green represents the 50-day moving average.
• Blue indicates the 100-day moving average.
• Light green signifies the 200-day moving average.

Crossovers or tests of the moving averages usually halt or set the market's momentum.