Bitcoin Price Dives Below $75k as US Senate Stalls Crypto Legislation

Bitcoin's price has taken a hit after the US Senate failed to advance the CLARITY Act, which aimed to establish a federal regulatory framework for digital assets. The Senate's procedural vote left the legislation stalled, and Bitcoin's price fell below $75,000.

The failure of the CLARITY Act coincided with significant outflows from US spot Bitcoin exchange-traded funds (ETFs), with a total of $450.4 million withdrawn on Tuesday. This is the largest daily withdrawal since June 25, when spot Bitcoin ETFs lost $691.7 million.

Fidelity's Wise Origin Bitcoin Fund (FBTC) suffered the biggest withdrawals, with $214.8 million leaving the fund. BlackRock's iShares Bitcoin Trust (IBIT) followed with $161.7 million in outflows. Grayscale's Bitcoin Trust ETF (GBTC) lost another $44.1 million, while ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) recorded $17.4 million and $12.4 million in outflows, respectively.