Fed Rate Hike Odds Drop to 40% as CLARITY Act Misses Deadline

Senate fails to vote on CLARITY Act before recess. Fed September rate hike probability falls to 40% amid weak data, supporting crypto markets.

Woofun AI reports that BitMine chairman Tom Lee stated the CLARITY Act failed to reach a Senate vote before the recess. Market focus has shifted to weakening inflation and employment metrics, causing the likelihood of a Federal Reserve rate hike in September to decline from 75% two weeks ago to approximately 40%. Lee indicated that these easing financial conditions create a favorable environment for the crypto market.

Lee observed that ETH outperformed BTC by roughly 1,100 basis points in July, mirroring trends from July 2025, December 2025, and March 2026. Historical data suggests BitMine's stock typically rises significantly ahead of ETH in the subsequent two months. The company maintains its shares are undervalued and is accelerating buyback programs.