Bitcoin Holders Capitulate After CLARITY Act Failure: What the Data Shows

The impact from the CLARITY Act vote failure was far more profound than just a price drop for BTC.

Tuesday was one of the most important days of the year for the cryptocurrency industry, as the US Senate was scheduled to vote on the key market-structure legislation, the CLARITY Act, which, unfortunately for its backers, went sideways.

The Senate rejected cloture on the motion to proceed with the bill, with the vote falling well short of the 60 votes required. BTC reacted with an immediate price drop, but there’s more to the story.

STHs Capitulate

According to CryptoQuant’s analyst Darkfost, Bitcoin short-term holders sent over 23,000 BTC to exchanges at a loss following the Senate setback. In USD terms, this massive stash was worth close to $1.8 billion. This represented the largest capitulation event in about a month.

STHs are generally more sensitive to sudden price movements, making their behavior expected and also useful for tracking periods of fear and forced selling, CQ explained. The reaction on September 15 is particularly worth observing because this cohort of investors spent almost a month in partial profit before yesterday’s price decline, the longest sustained profitable period of the year.