The U.S. House Financial Services Committee passed a strategic Bitcoin reserve bill on Wednesday evening, coinciding with the Federal Reserve's first 25-basis-point rate increase since 2023, which lifted the federal funds rate target range to 3.75%-4.00%. This dual shock from macroeconomic policy and legislative progress did not suppress crypto market enthusiasm; instead, it became the core driver of price movements across mainstream assets.

With the bill entering congressional review, major tokens like Bitcoin and Ethereum surged significantly, and altcoin prices also rallied. However, traditional crypto-related stocks showed divergent performance, with Strategy Inc. (MSTR.US) falling 2.64% and Bitmine Immersion Technologies Inc. (BMNR.US) dropping 3.35%.

Data indicates that over $330 million was liquidated in the past 24 hours, with $185 million in short positions wiped out. Bitcoin open interest rose 0.68%, and smart money sentiment has turned extremely bullish. Despite the total cryptocurrency market cap of $2.58 trillion declining 0.79% intraday, capital flows suggest bullish forces are building.

Where opportunities may lie

In traditional equities, the Dow Jones Industrial Average fell 631.21 points, or 1.21%, closing at 51,461.90. The S&P 500 dropped 0.45% to 7,551.81, while the Nasdaq Composite edged down 0.01% to 25,978.42.

In response to the Fed's tightening amid persistent inflation, prominent analyst Ali Martinez said he is not panicking. He identifies the short-term holder realized price near $71,200 as the next significant accumulation zone and emphasized staying prepared at all times.

Notably, the U.S. Senate's rejection of the CLEAR Act pressured Bitcoin prices, and Strategy (MSTR.US) shares fell along with other crypto-related stocks, but market focus has shifted to potential dip-buying opportunities.

Market sentiment flips to fear

Santiment noted that market sentiment toward Bitcoin has shifted from FOMO back to fear, warning that markets typically move opposite to extreme crowd views. Meanwhile, Raoul Pal considers Ethereum the leader in smart contracts but prefers Sui in the agentic AI economy sector for development potential.

As legislative uncertainty increases, market participants are closely monitoring the divergence between policy direction and capital sentiment, which could represent a fresh positioning window following the previous round of volatility.