US CLARITY Act Sparks ‘Major Euphoria’ Around Bitcoin, Santiment Says

Santiment warned that the crypto market “typically” moves against crowd expectations, while pointing to a recent increase in bullish sentiment fueled by renewed momentum surrounding the US CLARITY Act.

Sentiment surrounding Bitcoin’s near-term price direction has strengthened as momentum grows behind the US CLARITY Act, which is intended to provide the crypto industry with clearer regulatory guidelines, according to crypto sentiment platform Santiment.

“Bitcoin has seen a major spike of euphoria across social media following news that the Senate Banking Committee advanced the CLARITY Act in a 15–9 bipartisan vote,” Santiment said in an X post on Friday.

“This brings BTC and crypto one step closer to being ultimately passed,” Santiment said.

Crypto Analysts Remain Optimistic Despite Market Uncertainty

Bitcoin has often experienced rising optimism around major industry and macroeconomic catalysts, and the US CLARITY Act has fueled significant speculation since its introduction in July 2025 regarding what its potential approval could mean for the broader crypto sector.

During a Thursday session of the US Senate Banking Committee, the Digital Asset Market CLARITY Act was advanced after receiving support from all 13 Republican members and two Democrats, while nine Democratic members voted against the bill.

Meanwhile, Bitcoin was trading at $79,084 at the time of publication, marking a 3.15% increase since May 1, according to data from CoinMarketCap.

Santiment reported that Bitcoin currently receives 1.55 bullish social media comments for every bearish one, suggesting the imbalance in sentiment could be signaling potential warning signs. “We advise caution. Markets typically move opposite to the crowd’s expectations at all times,” Santiment said.

However, crypto analysts remain optimistic that the trend will continue. Michael van de Poppe, founder of MN Trading Capital, said in an X post on Friday that the legislation is “the biggest, and historical, bill for the entire industry and can be a strong trigger for the upcoming bull market.”

White House Crypto Adviser Says Agreement Is Not Final Yet

Patrick Witt said in an X post on Friday that, although the CLARITY Act vote represented “a major step forward,” the legislation has not yet been finalized.

“As Senators on both sides of the dais noted, there’s more work to be done before this legislation is ready for prime time. We’ll keep working in good faith to build the support needed to pass the bill on the Senate floor,” Witt said.

Santiment said that any progress toward the passage of the CLARITY Act “can and should be considered bullish for crypto (in the long run)” because it could finally provide the industry with clearer regulations in the United States.

“If the CLARITY Act passes, more institutional money and powerful players would be expected to enter (or re-enter) the markets,” Santiment said.

However, the sentiment platform warned that expectations surrounding the CLARITY Act may already be priced into the market before the legislation is officially approved.

Other indicators suggest that market participants are becoming increasingly cautious toward the broader crypto market. The Crypto Fear & Greed Index recorded a “Fear” score of 31 on Saturday.