Bitcoin Price Held Firm Despite CLARITY Act Setback, Crypto Hack, and Rising Yields

Key Insights:

• While the CLARITY Act missed its Senate deadline, Bitcoin price gained 3.7% the same week.
• One decent ETF week sits against staggering $4.5 billion in year-to-date net outflows.

The U.S Senate left Washington for its August recess on Friday without passing the CLARITY Act, one of the most significant pieces of crypto legislation in years. Any further development will now resume after summer recess, with the Senate returning on September 14.

Bitcoin remained strong despite several negative developments last week. A major regulatory setback, a multimillion-dollar hardware wallet hack, and rising government bond yields all hit the market within five days. Yet Bitcoin held up around $65,200, gaining 3.7%.

Bitcoin Defies CLARITY Act Delay as Market Risks Rise

Three things went wrong for crypto in the same week. Such situations typically put pressure on risk assets, but none of them caused a major price drop.

The CLARITY Act is the bill that would define which U.S. regulator oversees which digital assets. Bitcoin and Ethereum would likely be classified as commodities by the CFTC. Other tokens would fall under the SEC as securities.

For the bill to move to the next stage, it needs to pass the Senate, but the Senate did not advance it before leaving for its August recess on Friday. Majority Leader John Thune had already started the first step of the cloture process. It is used to move a bill toward the 60 votes needed for passage.