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.
So, that means the bill is delayed, not canceled. However, the further steps will have to wait until the Senate returns on September 14.
Coldcard Hack and Rising Yields Fail to Weaken Bitcoin
Coldcard, one of the most trusted hardware wallet makers for crypto, reported a serious security exploit linked to hacks involving millions of dollars. Hardware wallets were designed to keep private keys offline and protect funds from online threats. However, breaches like this have raised concerns about whether Bitcoin remains safe even if stored offline.
Usually, news of a major security breach like the Coldcard exploit would normally put pressure on Bitcoin’s price. However, Bitcoin price held firm despite news of the incident spreading across markets.
Rising U.S. government bond yields added further pressure on Bitcoin. Whenever bond yields rise, investors usually shift their investments away from riskier assets, such as crypto, toward safer investments like bonds. Yields continued to rise throughout the week, but this time, however, Bitcoin held up.
The delay to the CLARITY Act, a multi-million-dollar exploit hit Coldcard, and rising bond yields all came within the same five-day period. Despite these negative factors, Bitcoin price gained 3.7% instead of falling.
Bitcoin ETFs Record $853 Million Weekly Inflow
Spot Bitcoin ETFs saw inflows of $853.54 million for the week that ended on August 7, 2026. It marked the strongest weekly inflow since mid-April, according to SoSoValue data.
However, while looking at the broader picture, Bitcoin ETFs are still in net outflows of around $4.5 billion year-to-date. One strong week doesn’t cover up six months of selling.
