Bitcoin Plunges as Senate Blocks CLARITY Act and Rate Hike Looms
The Senate's vote to block the CLARITY Act has sent shockwaves through the crypto markets, causing Bitcoin to react bearishly.
The bill aimed to provide regulatory clarity for cryptocurrencies by 2027, but Democrats withheld their support due to concerns over conflicts of interest and safeguards around stablecoin rewards.
As a result of the vote, short-term holders of Bitcoin panicked, leading to an increase in daily exchange inflows from these holders. According to Darkfost, a crypto analyst, this saw 33.1k BTC moved to exchanges at a loss, with 23.2k BTC sent to exchanges in just one day.
The data from CryptoQuant shows that the 30-day exchange net taker volume has fallen into negative territory, with a reading of -87.8k BTC at the time of writing. This is a worrying sign for Bitcoin markets, as it was last seen in early June when the price corrected to $60,000.