Bitcoin Plummets Nearly $3K in 12 Hours, Monthly Gains Wiped Out

Bitcoin's price took a sharp dive on July 31, plummeting nearly $3,000 in just 12 hours. The cryptocurrency dropped to an intraday low of $62,369, wiping out its monthly gains and leaving it with only 4.5% growth. This sudden reversal comes after Bitcoin had been trading at around $65,000 just hours before.

The market capitalization also suffered a decline, falling from $1.3 trillion to $1.26 trillion. The derivatives market was particularly affected, with overleveraged long bets worth $100 million being wiped out. This is a fourfold increase from the $23 million liquidated 24 hours earlier.

The lack of progress on the CLARITY Act in the U.S. Senate contributed to the decline. Senator Lummis's bill aims to provide regulatory clarity for cryptocurrencies, but its passage odds have been slashed to 30% due to legislative stalls.