Bitcoin fell below $74,500 on Friday for the first time in four weeks, extending losses across nine straight trading days. Three overlapping threats — a stalled crypto bill in the Senate, a hawkish turn from the Federal Reserve, and rising US-Iran military tensions — triggered nearly $1 billion in market liquidations over 24 hours. Bitcoin alone accounted for $378 million of that, with $353 million from long positions.
The triple threat that broke the streak
Until this week, Bitcoin had held above $74,500 since late April. What changed? Three big risks collided at once — and none are going away quickly. The CLARITY Act, a bill that would split digital-asset oversight between the SEC and CFTC, is running out of time in the Senate. The Fed, meanwhile, is talking about rate hikes again. And the White House is considering fresh military strikes on Iran if diplomacy fails. Any one of those would be tough. All three together? The market buckled.
CLARITY Act hits Senate gridlock
The CLARITY Act faces growing delay risk. The Senate adjourned until June and has only four working weeks in June and three in July before the August recess. Banking lobbies are reportedly winning the fight to slow it down, pushing the bill into midterm election season. Supporters had hoped the bill would give crypto exchanges a clearer regulatory path, but with the calendar tightening, this session may slip away.
Waller opens the door to rate hikes
Federal Reserve Governor Christopher Waller said this week he can no longer rule out interest rate hikes during 2026. Stubborn inflation and energy price shocks are the culprits. Rate futures now price a non-negligible chance of a quarter-point hike as soon as October. That's a direct headwind for risk assets. On top of that, incoming Fed Chairman Kevin Warsh is seen as hawkish — one commentator warned his appointment could weigh on Bitcoin's price.
Liquidations pile up as Bitcoin breaks down
The price drop accelerated after Bitcoin slipped below $73,500 — a level it hadn't touched since April 20. That technical breakdown unleashed a wave of forced selling. The nearly $1 billion in total liquidations across crypto exchanges wiped out leveraged longs and amplified the selloff. The slide has been sharp and orderly at the same time, which suggests more pain if the macro picture doesn't improve.
Next up: a packed Senate calendar that leaves little room for the CLARITY Act, and a Fed that's watching inflation data like a hawk. The Iran situation adds another layer of uncertainty. For now, the market is priced for more volatility, not less.
