Bitcoin and Ethereum Surge Amid Renewed CLARITY Act Push

The cryptocurrency market has seen some volatility in recent days, with Bitcoin and Ethereum posting gains while XRP and Dogecoin slide. The renewed push to pass the CLARITY Act in the Senate has sparked renewed interest in cryptocurrencies. Despite this, trading activity remains subdued, and Bitcoin fell short of reaching the $65,000 mark.

Ethereum, however, posted a stronger advance, climbing to an intraday high of $1,922. Meanwhile, XRP and Dogecoin traded lower. The drama over the CLARITY Act persists, with Senate Majority Leader John Thune floating a last-minute vote to pass the legislation.

According to Coinglass data, over $250 million was liquidated from the cryptocurrency market in the last 24 hours. Bitcoin's open interest rose 1.17% over this period, while smart money sentiment turned 'extremely bearish.' Binance top traders remained net long on Bitcoin, but their exposure has fallen significantly this week.

Ali Martinez, a widely followed cryptocurrency analyst and trader, identified a bullish divergence between Bitcoin's price and net capital flows. He noted that the last such signal preceded the rally from $15,000 to $126,000, representing a 740% upside. If the CLARITY Act passes this week, it could end the market's wait-and-see stance and trigger a bull rally for Bitcoin and altcoins.