Key highlights:
- The CLARITY Act received a major rejection in the US Senate, denting its odds for passage in 2026
- After the cloture vote failed, Bitcoin short-term holders capitulated, with the majority of them racking up losses
- The rest of the cryptocurrency market recorded steep losses in the aftermath of the legislative defeat
The Trump-backed CLARITY Act has
CryptoQuant’s analyst disclosed that the majority of these Bitcoins were moved at a loss. , making it the largest capitulation event among short-term holders over the last 30 days
“This regulatory shock highlighted the structural nervousness among STHs, who are capable of deploying large amounts of BTC in a short span of time.
Broader cryptocurrency market bleed
In the wake of the legislative disappointment, Bitcoin shed 2% of its market value to trade at $75,000. Meanwhile, Ethereum logged a 3% decline over the last 24 hours, trading at $2,400.
While Bitcoin and Ethereum had modest losses, other altcoins recorded steeper losses. XRP price tumbled by nearly 10% over the last day, while SOL price slid by 4% in the same window.
The global cryptocurrency market capitalization fell by 2.12% to sit at $2.57 trillion, while daily trading volumes also took a major hit.
Source:: CLARITY Act Rejection Triggers Largest Bitcoin Short-Term Holder Capitulation in September