CLARITY Act Rejection Triggers Widespread Capitulation Among Short-Term Holders

The U.S. Senate's rejection of cloture on the CLARITY Act sent shockwaves through the cryptocurrency market, causing a sharp decline in Bitcoin prices from $79,500 to $76,000.

According to CryptoQuant data, short-term holders (STHs) were particularly affected, sending over 23,000 BTC to exchanges at a loss worth approximately $1.8 billion.

This was the largest capitulation event in roughly one month and marked a significant turning point for STHs, who had accumulated nearly a month of partially profitable positions before the drop.