Crypto Prices Tumble After Senate Rejects Clarity Act

The U.S. Senate recently voted against advancing the CLARITY Act, a bill that aimed to provide clarity on market-structure rules for cryptocurrencies. The 49-50 vote fell short of the 60 needed to end debate, leaving the regulation of crypto markets in the hands of the SEC and CFTC.

This development has significant implications for the prices of XRP, Bitcoin, and Ethereum. To predict their year-end ranges, analysts created scenario-based forecasts based on current price levels, technical zones, and macroeconomic conditions.

XRP has been hit hard by the failed vote, with its price falling more than 10% to around $1.30. However, XRP ETF inflows have held up better, suggesting that institutional buyers see the selloff as sentiment-driven rather than fundamental. If this trend continues, analysts predict a base outlook of $1.50-$2.00 for XRP by year-end.

Bitcoin's regulatory exposure is smaller compared to XRP and Ethereum, but its price has still been affected by the vote. Analysts predict that if Spot Bitcoin ETF inflows accumulate in the hundreds of millions again, Bitcoin could finish the year around $85,000-$92,000. However, another rate hike this year could push Bitcoin's price to $65,000-$72,000.

Ethereum is currently trading near $2,440 and has been stuck within a range between $2,350 and $2,570 since late August. Analysts predict that if Ethereum ETF inflows continue to slow, combined with uncertainty around the CLARITY Act, Ethereum could drop to as low as $2,000-$2,300 by year-end.

However, if the CLARITY Act is revived in Congress and Ethereum ETF inflows reach over $1 billion like they did in August, Ethereum could finish the year as high as $3,500-$4,000. The analysts' bull case for each coin depends on various factors, including stronger ETF inflows, renewed institutional demand, clearer staking rules, and a stabilizing ETH/BTC ratio.