Bitcoin Slumps Below $63,000 Amid Fading Crypto Legislation Momentum

Bitcoin's price fell below $63,000 on July 31, as market sentiment turned bearish. The decline was attributed to fading momentum behind US crypto legislation and disappointing earnings from Coinbase Global Inc. and Strategy Inc.

Funds are selling into any rally, according to Joshua Lim, global co-head of markets at FalconX. 'Funds are selling into any rally as expectations around the CLARITY Act diminish,' he said. Implied volatility on BTC hovers near historic lows due to a large supply of overwriting funds keeping the asset range-bound.

The decline in Bitcoin's price is seen as a sign that speculative investors are pulling back from riskier trades. This has led to a decrease in momentum behind US crypto legislation, which had been expected to boost the market.