Senate Vote Blocks Crypto Bill, Triggering $571 Million Liquidations
Bullish futures positions worth $571 million were liquidated after the Clarity Act failed to pass the Senate. Bitcoin and Ether absorbed the largest share of these losses.
Crypto exchanges liquidated $571 million in long positions within 24 hours. This occurred after the Senate blocked the Clarity Act with a 49-50 vote. The failure of the 60-vote procedural hurdle reversed recent market optimism.
Bitcoin and Ether longs suffered the heaviest damage. Each asset lost approximately $190 million in liquidated value. These figures represent the largest single-day losses for these assets in the current market cycle.
Market positioning reversed rapidly
Traders had increased bullish bets ahead of the vote. Reports suggested President Trump was willing to make concessions on ethics provisions. Bitcoin rose from $77,000 to nearly $80,000 on Monday in response to these signals.
The rally unwound as news emerged that Democrats opposed the bill. The final vote confirmed these concerns. The market shifted from anticipation of regulatory clarity to immediate price correction.
Regulatory focus shifts to agencies
The legislative path for the Clarity Act is now blocked. Regulatory momentum has moved to the executive branch. The CFTC and SEC retain the ability to implement their own rules.
Bitcoin remains at $75,700 as of the latest data. This price sits within its recent trading range. GN markets/crypto (en-US) reports that the volatility from these liquidations has been contained so far.
Other assets face smaller losses
XRP longs lost about $30 million in the same period. Solana longs lost approximately $22 million. Bearish positions accounted for only $100 million of the total liquidations.
Analysts had identified Ether and DeFi tokens as likely outperformers. The failure of the bill removed this specific catalyst. The remaining losses across the market were significantly lower than those for Bitcoin and Ether.
