The crypto rally this week is being driven by three catalysts: the Strait of Hormuz reopening (before Iran reversed it), nearly $1 billion in Bitcoin ETF inflows, and growing expectations around the CLARITY Act markup. That combination is why the gains have held better than previous rallies this year.

Institutional money is back to crypto, with Bitcoin ETFs pulling in $996 million this week, XRP ETFs recording $55 million, and Solana bringing in $35 million.

The Strait of Hormuz has already been closed again after Iran reversed its reopening on April 18, and the ceasefire expires soon. If the CLARITY Act markup gets scheduled and the war stops, the rally could extend, but without both, the gains are at risk of fading like…