Bitcoin Slumps to $75K as CLARITY Act Fails Senate Vote
The cryptocurrency market shed $80 billion over the past 24 hours after the Senate failed to advance the CLARITY Act, a key piece of legislation aimed at regulating the industry.
Bitcoin (BTC) was among the hardest hit, falling 4% to just over $75,000 in late trading on Tuesday. This marked its lowest level since August 21 and wiped out some of the gains made as investors anticipated progress on landmark cryptocurrency legislation.
Ethereum fell 4.6%, dipping below $2,400, but remains at the lower bounds of a multi-week sideways trading channel. Other crypto assets such as Litecoin (LTC) and Solana (SOL) saw heavier losses, while crypto stocks took a massive hit with Coinbase (COIN) and Circle (CRVL) dropping double digits on Tuesday.
The question now is whether this selloff marks the start of a deeper market correction or simply the unwinding of a regulatory premium already priced into Bitcoin and other assets. Grayscale stated that while this was not the outcome they hoped for, 'the industry continues to make remarkable progress through the ongoing work of regulators like the SEC and CFTC.'