CLARITY Act Failure Weighs on US Bitcoin Demand, Coinbase Premium Hits Low

The failure of the CLARITY Act to advance in the US Senate has put pressure on Bitcoin demand, causing the Coinbase Premium Index to hit a monthly low. The index measures the difference in price between Coinbase's and Binance's BTC/USDT pairs, and its current reading of -0.079 is the lowest since August 16th.

On-chain analyst Willy Woo notes that the divergence in seller behavior between Coinbase and non-US exchanges intensified around the vote. He sees a 'bullish' signal as Coinbase selling diverges from Binance, where buyers are still active.

A significant number of short-term holders have sent Bitcoin to exchanges in the last 24 hours, potentially for sale at a loss. This is the largest inflow in a month, with over 34,000 BTC being transferred to exchanges, mostly at lower prices than when they last moved on-chain.