CLARITY Act Fail Sends Crypto Market into Tailspin

The cryptocurrency market took a hit on Wednesday as Bitcoin's price fell to around $75,000 following a 3% decline the previous day. The US Senate failed to advance the CLARITY Act, which would have divided regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The failure of the CLARITY Act eased excess demand in the crypto market, with over $600 million in liquidations in 24 hours. Long-position unwinding was a major driver of these losses, with CoinGlass data showing that $570 million in long positions were liquidated.

Both Pi Network and Injective emerged as the weakest performers, with their prices dropping 5% and 13%, respectively. The PI token's price remains below its 50-day and 100-day Exponential Moving Averages (EMAs), while Injective's price is trading above its 50-day and 200-day EMAs.