The crypto bill cleared its first real vote. $4 billion in fresh capital landed this month. And bitcoin still dropped, because the inflation print came in hot.
gm.
A busy week.
The Senate Banking Committee passed the bill that finally tells crypto what it can and can’t do. Four billion dollars of fresh capital landed at three different crypto firms over the past two weeks. And bitcoin still dropped, because the inflation print came in hot.
Market in 60 Seconds
BTC
Briefly hit $82k on the Senate vote Thursday, then slid back under $80k by the weekend.
ETH + SOL
Both gave back gains alongside bitcoin.
Macro
Inflation came in hotter than anyone expected. The new Fed chair just took over.
Stocks
The S&P 500 hit a fresh all-time high anyway.
Vibe
Relief on the vote, then a reality check from the inflation print.
3 Stories You Should Know
The Senate finally voted on the crypto rulebook
The CLARITY Act cleared its first real hurdle Thursday, 15 to 9. Two Democrats crossed over to vote with Republicans, which is rare on anything crypto-related. Bitcoin briefly hit $82k on the news. We flagged the vote was coming last week.
The bill still has to clear the full Senate, which needs 60 votes and will take negotiating. But for the first time, there’s a real version of the rulebook on paper and a real bipartisan path. It has to pass by August or it likely waits another year.
So what: The rules are no longer hypothetical. There’s an actual draft and an actual deadline.
$4 billion in fresh capital landed this month
a16z’s crypto arm closed a $2.2 billion fund. Katie Haun — a former federal prosecutor who became one of crypto’s first major investors at a16z, then started her own fund — raised $1 billion. And Kalshi, the prediction market where you can bet on basically anything from elections to whether Ozempic gets cheaper, raised $1 billion at a $22 billion valuation. Their institutional trading volume is up 8x in six months.
So what: Four billion dollars lined up at three different firms a week before the Senate voted. Not a coincidence.
Inflation came in hot. Bitcoin took it on the chin.
Wholesale prices ran 6% year over year, the hottest reading since 2022. Bond yields jumped. Odds of another Fed rate hike are back to about 30%.
When inflation runs hot, the Fed has to keep borrowing expensive to cool things off. Expensive money means investors back off anything speculative, crypto included. Bitcoin slid back under $80k. Coinbase, Circle, and MicroStrategy stocks all dropped 5 to 10%.
So what: Nothing fundamental changed. This was a macro move, not a crypto one.
What We’re Watching Outside Crypto
Powell’s term ended Friday. Kevin Warsh took over as Fed chair, confirmed in the closest vote in modern history (54–45). Trump hired him to cut rates. Odds are he’ll try.
The Fed sets the price of borrowing for the whole economy. Cheaper borrowing usually means more money chasing stocks, real estate, and crypto. So the question is whether Warsh actually cuts with inflation still running hot.
His first meeting is in June. We’ll be watching closely.
Why Higher Matters Right Now
This week was the whole story in miniature: the rulebook moved forward, the smart money kept showing up, and price still got dragged around by a single inflation print.
The long-term setup and the short-term tape are pointing in different directions. Higher keeps both on the same screen so you don’t confuse one for the other.
Oh — and Echo dropped an album on Spotify this week. Don’t ask.
Know someone who thinks the inflation print and crypto are unrelated? Send them this.
Not financial advice. Aggregated community trends and commentary.