Bitcoin Falls Under $64,700 as CLARITY Talks Stall, Brent $101
Bitcoin fell below $64,700 after U.S. Senate talks on the CLARITY Act stalled, while Brent crude topped $101 per barrel.
Bitcoin fell below $64,700 on Thursday after U.S. Senate negotiations over the CLARITY Act stalled, and Brent crude briefly topped $101 per barrel. The drop erased about $20 billion from the cryptocurrency market and triggered $42.3 million in long position liquidations.
Earlier in the day bitcoin traded between roughly $66,200 and $65,750 as markets processed reports that senators were nearing agreement on key text for the bill. Shortly before midnight the price broke the $65,750 support level and slipped to $65,368, then staged a short relief rally. A renewed sell-off before 7 a.m. EST pushed the price down nearly $1,000 over six hours, leaving bitcoin down about 2% for the day. Its market capitalization fell from just over $1.32 trillion to about $1.3 trillion.
Derivatives platforms recorded $42.3 million in long position liquidations, up from about $18 million 24 hours earlier. Short position liquidations reached $6.2 million, roughly half the level recorded on Wednesday.
Brent crude briefly exceeded $101 per barrel and U.S. West Texas Intermediate climbed past $92. Market participants linked the oil rise to comments from former President Donald Trump about potential strikes on Iranian targets and to Houthi attacks on commercial vessels in the Red Sea that have disrupted shipping routes.
Dean Chen, an analyst at Bitunix, noted that “liquidity conditions, energy volatility, and shifting Federal Reserve policy expectations represent the critical triad that will dictate risk-asset trajectory — including crypto — in the weeks ahead.”
Negotiations on the CLARITY Act had shown signs of progress earlier in the week, but renewed partisan friction between Senate Republicans and Democrats stalled movement on the bill. The CLARITY Act is a proposed Senate bill that would clarify how digital assets are regulated.
Traders pointed to the stalled legislation, the spike in oil prices and changing expectations for Federal Reserve policy as reasons for the morning sell-off.
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