A Seeking Alpha analyst predicts a potential 35% crash for Bitcoin and the iShares Bitcoin Trust (IBIT). The report attributes this bearish outlook to misplaced optimism regarding the CLARITY Act. Deep disagreements among stakeholders make the bill’s passage highly unlikely. This legislative deadlock could trigger a significant market correction as retail expectations adjust. The analyst characterizes the recent rally to the $81,000 level as speculative and irrational.
This forecast contrasts with strong institutional demand and a six-week streak of net inflows for spot Bitcoin ETFs. IBIT and similar funds have absorbed billions in capital during this period. General sentiment remains buoyed by these flows and the belief that clearer regulations will eventually drive further institutional adoption.