Analysis: The passage of the CLARITY Act resonates with expectations of fiat currency depreciation, and BTC strengthens against the trend amid Middle East conflicts

Odaily reported that as the Middle East conflict impacts global stock markets and commodities, bitcoin has bucked the trend, reaching a one-month high and driving a recovery in the overall crypto market. After falling nearly 50% from its historic peak in October last year, bitcoin was once in an oversold zone. Following the outbreak of this round of major conflict, traditional assets plummeted, while BTC remained relatively resilient, reinforcing its temporary "safe haven narrative." Market analysts believe this rally is mainly driven by three factors:

1. The "fiat currency depreciation" logic returns. The Middle East conflict intensifies global fiscal pressure, potentially prompting expectations of more easing and deficit expansion, strengthening the "fiat currency depreciation" narrative. As a result, some funds have been reallocated to digital assets.

2. There may be expectations of easing tensions in the Middle East. Although the US has not responded, this news has reinforced market expectations that "the conflict may not spiral out of control for long," supporting a recovery in risk asset sentiment.

3. The CLARITY Act is close to passing, aiming to clarify the legal status of stablecoins, which is positive for the crypto market. (CoinDesk)