Analysis: The passage of the CLARITY Act is expected to drive BTC's strength against the trend, fueled by the logic of currency depreciation and regression

By: rootdata|2026/03/04 20:43:40
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According to CoinDesk, amidst the impact of the Middle East conflict on global stock markets and commodities, Bitcoin has risen against the trend, reaching a one-month high and helping to revitalize the overall cryptocurrency market. After falling nearly 50% from its historical high in October last year, Bitcoin had once been in the oversold territory.

Following the outbreak of this round of key conflicts, traditional assets have significantly declined, while BTC's relatively strong performance has reinforced its temporary "safe-haven narrative." Market analysis suggests that this round of increase is mainly driven by three factors:

  1. The return of the "fiat currency depreciation" logic, as the intensifying Middle East conflict exacerbates global fiscal pressures, which may lead to expectations of more easing and deficit expansion, strengthening the "fiat currency depreciation" narrative, prompting some funds to be reallocated to digital assets.
  2. There may be expectations for a de-escalation in the Middle East situation. Although there has been no response from the U.S., this news has strengthened market expectations that "the conflict may not spiral out of control for a long time," supporting the recovery of risk asset sentiment.
  3. The CLARITY Act is close to being passed, aiming to clarify the legal status of stablecoins, which is beneficial for the cryptocurrency market.

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