Bitcoin Tumbles Below $77k as Traders Liquidate Over $100m Ahead of CLARITY Act Vote

Bitcoin's recent gains have been erased after falling below $77,000 as traders de-risk ahead of Tuesday's key Senate vote on the CLARITY Act. According to Coin Bureau, over $100 million in leveraged positions were liquidated within the previous 12 hours.

This sharp increase in market volatility indicates that traders are repositioning themselves before a closely watched U.S. legislative event. The timing of this decline comes as investors assess the potential implications of the CLARITY Act on the regulatory framework governing digital assets in the United States.

The Senate vote now represents the immediate catalyst for the markets, with traders watching both the legislative outcome and Bitcoin's price response after the vote. Whether the cryptocurrency can recover the $77,000 level or remains under pressure will be closely monitored as leverage continues to unwind.