Bitcoin Plunges as South Korea's Stocks Tumble and Crypto Clarity Act Shelved

Bitcoin fell by around 2% during the U.S. overnight session due to a plunge in South Korea's Kospi stock index, which dropped 11%, one of its worst single-day declines in years.

The slide sent shockwaves across global risk assets, with AI and layer-1 tokens being hit hardest, particularly FET, NEAR, and HYPE, which lost as much as 10% over the past 24 hours.

The U.S. Senate shelved the Crypto Clarity Act to prioritize a Russia sanctions bill and federal nominations, leaving just two weeks of floor time before the Aug. 8 recess begins and a key unresolved dispute over restrictions on government officials' crypto holdings remains outstanding.