Digital asset investment products just pulled in nearly $860 million in a single week, extending a six-week streak of inflows as momentum builds around the U.S. Digital Asset Market Clarity Act.
Meanwhile, short-Bitcoin products recorded $14.4 million in outflows, the largest this year, suggesting investors are unwinding bearish hedges as confidence builds.
CLARITY Act influence“The Clarity Act has been the major driver for the inflows — it's something both the crypto industry and institutions have been waiting for since last year,” Nic Puckrin, co-founder of Coin Bureau, told Decrypt.
He added the Act is “a catalyst rather than the sole reason,” as institutional interest has been “building in the background this whole time,” and that resolving the legislation would “remove a major regulatory obstacle.”
Dean Chen, analyst at crypto exchange Bitunix, described the current trend as "capital rotation and dip-buying activity rather than the beginning of a fully confirmed long-term bull cycle."
Bitcoin retraced nearly 50% from its October 2025 all-time high of around $126,200, he told Decrypt, making recent inflows look more like value-seeking than structural re-rating.
"I believe the recent inflows are more reflective of spillover capital from overheated traditional risk assets and value-seeking flows into heavily corrected crypto assets," Chen said.
The road aheadPuckrin said that if banking opposition stops the CLARITY Act “in its tracks,” it would hit sentiment, though the bigger risks remain “geopolitics, energy shocks, and inflation.”
He warned that without a near-term resolution to the Iran conflict, rising oil prices could trigger broader inflation and tighter liquidity, hitting crypto as “the most liquidity-sensitive asset there is.”
On macro risks, Chen flagged this week's CPI print as the key short-term catalyst, warning the backdrop "increasingly resembles a 'slowing growth but sticky inflation' environment."
A hotter-than-expected inflation reading could reprice Fed cut expectations, lift Treasury yields, and strengthen the dollar, conditions under which recent inflows "may prove to be more tactical and short-term in nature rather than evidence of a durable long-term trend reversal," he said.
