Bitcoin Price Rally May Be Around the Corner Amid Clarity Act Momentum

Bitcoin has had a rough year so far, down 38% from its all-time high last October. However, recent developments suggest that the cryptocurrency might have finally hit bottom.

The Digital Asset Market Clarity Act, which received White House support in mid-August, is expected to remove regulatory gray areas surrounding Bitcoin and make it easier for investors to hold the currency in their portfolios.

As momentum builds around this legislation, investment thesis of Bitcoin as 'digital gold' appears to be returning. The correlation with gold is increasing, partly due to concerns about the U.S. economy and the $40 trillion U.S. debt load.

BTC treasury companies are also buying Bitcoin again after a nearly two-month hiatus. Strategy(NASDAQ: MSTR) announced a major BTC buy, which has resulted in a $1.4 billion paper gain on its holdings.