Leading cryptocurrency experts Andrew Parish and Tillman Holloway have identified regulatory uncertainty as the primary obstacle preventing Bitcoin from reaching a new all-time high. In a recent broadcast, they centered their discussion on the pending Digital Asset Market Clarity Act in the United States, echoing sentiments from Bitwise CIO Matt Hougan. The experts assert that the enactment of this legislation could trigger an immediate surge to a new peak for Bitcoin.
However, the path to this clarity is fraught with political challenges. Parish highlighted intense opposition from the banking lobby, which he claims is making a concerted effort to stifle crypto innovation, particularly in DeFi and stablecoins. He criticized the irony of politicians trading stocks on insider information while simultaneously hindering the crypto sector. Further concerns were raised about draft texts from the Senate Banking Committee that discuss potential restrictions on self-custody wallets, with Holloway dismissing such efforts as impractical and "like banning the use of clothes dryers at home."
The discussion also turned to corporate treasury strategies involving Bitcoin. Referencing comments from Mike Novogratz and Anthony Scaramucci, the experts warned that companies buying Bitcoin solely through debt is an unsustainable strategy. Holloway cautioned that "buying Bitcoin with debt is combining the highest quality asset with the lowest class instrument (debt)," which could eventually lead to forced selling.
Meanwhile, Bitcoin's price action underscores a market divide. BTC recently rallied to two-month highs above $95,500, but on-chain data reveals the move is being driven more by overseas demand than U.S. buyers. The Coinbase Premium Index has remained negative since early November, indicating U.S. investors are either selling into strength or staying on the sidelines. This divergence suggests global liquidity, potentially from derivatives or non-U.S. exchanges, is fueling the current rally.
Analysts link the lag in U.S. demand directly to the delayed regulatory clarity, with a key Senate markup for the Clarity Act postponed to the last week of January. Until this uncertainty is resolved, domestic demand may remain muted, leaving Bitcoin's rally vulnerable to volatility if global momentum fades without confirmation from U.S. spot buyers.
