CLARITY Act Vote Looms: Bitcoin and Ether Plummet in Weekend Trading
Bitcoin and Ether fell sharply during thin weekend trading due to low liquidity as traders approached Tuesday's crucial U.S. Senate vote on the CLARITY Act.
The vote, which requires 60 Senate votes for cloture, could advance the legislation into its next stage of Senate consideration. The bill would give state attorneys general an enforcement role and require officials with significant crypto-related financial interests to divest or place them in a blind trust.
Bitcoin dropped by about 0.8% to $76,827, while Ether fell by around 1.3% to $2,484.54 before recovering toward the $2,490 price level. Thin weekend liquidity often amplifies sharp downside wicks, which can occur when smaller orders generate larger short-term price movements.
The Senate cloture vote on Tuesday will provide a clear test of whether traders had already priced in legislative risk or simply swept weekend liquidity. A successful vote would remove one source of regulatory uncertainty and could support a relief-or-risk-on reaction across Bitcoin, Ether, and altcoins if markets respond positively to legislative progress.