In the US, lawmakers are debating the CLARITY Act, which could significantly change the way crypto assets are regulated. What is at stake is the classification of Bitcoin and other crypto assets as commodities or securities. Should they be treated as commodities, the CFTC would be in charge, and a lot of regulatory ambiguity could be avoided.

We used Claude AI to look at a scenario where the bill passes with that commodity framework. In that case, the BTC price could benefit from new institutional money entering a market where supply is already tight. 

Only about three million BTC are estimated to be actively tradable due to long-term holders and lost coins. With that limited supply, Claude AI estimates the BTC price could reach $115,000 to $145,000 over the next 12 to 18 months.

Ethereum’s outlook depends heavily on how it gets classified. If the ETH price attains the status of a commodity, the price of Claude AI could increase up to around $4,500 to $6,000. On the other hand, if the price of ETH attains the status of a security, the growth of staking and DeFi products could decline, keeping the price of ETH around the range of $1,800 to $2,500.

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If you look at the BTC chart, it appears as though the market is settling down after the rather dramatic run earlier in the year. The price has been consolidating for some time, mostly moving between $63,000 and $72,000 as both sides fight for some stability.

A couple of key technical structures stand out. There’s a descending resistance line from earlier highs that keeps capping rallies, and at the same time a rising support trendline has formed underneath the price. 

Together they’re squeezing the BTC price into a tightening wedge. In late February, the chart showed a break of structure (BOS) that pushed the BTC price toward $72,000, but sellers stepped in again near that descending resistance.

The 100-period moving average support level at $67,500 is holding strong, while the RSI level at 49 is quite neutral. If Bitcoin is able to break through the current level of resistance, the next level to watch will be the zone between $75,000 and $78,000.

When looking at the long-term prospects, the general sentiment is much more optimistic, with Claude AI’s long-term projections putting the value of Bitcoin at a possible $115,000 to $145,000 should the CLARITY Act bring much-needed regulatory clarity to the market.

Read Also: ChatGPT Predicts the Price of Bitcoin and Ethereum if the Clarity Act Passes

Ethereum is showing a very similar setup on the chart, though the consolidation range is even clearer. Ethereum has been trading in a tight belt between $1,850 and $2,200 in the most recent weeks, as the markets are trying to stabilize after the initial drop.

If you check the green box, this is the main demand zone where the bulls are showing up time and time again. However, the flip side of this is the downtrending line, which has been capping the rallies. Hence, the most recent rally towards this line was rejected on the trendline, and this is why the chart is showing the exact scenario right at the top.

The 100-period moving average at $1,978 is providing short-term support, and the RSI is also close to the 50-mark, indicating a fairly balanced scenario between the buyers and the sellers. Once the $2,200 level is breached, the next levels would come in around $2,500 and $2,800. Holding this level would indicate a sideways movement in the Ethereum markets.

Claude AI’s bigger outlook depends heavily on how Ethereum is classified under the CLARITY Act. If ETH receives commodity status and regulatory uncertainty fades, the model estimates the ETH price could climb toward the $4,500 to $6,000 range within the next 12 to 18 months as institutional capital begins entering the market.

Read Also: Bitcoin Price Slips as Millions in BTC Move From Binance, Coinbase, and Bybit Wallets

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The post Claude AI Predicts the Price of Bitcoin and Ethereum If the CLARITY Act Passes appeared first on CaptainAltcoin.

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