Bitcoin dropped nearly 2% on Thursday, sliding from just above $66,000 to trade below $64,700. The move wiped out around $20 billion in market cap and triggered $42.3 million in liquidations of long positions, according to data from Coinglass.
What moved the market
The sell-off was driven by stalled talks on the CLARITY Act, a bill that would have provided a clearer regulatory framework for digital assets in the U.S. Negotiations between lawmakers hit a snag this week, with no immediate path to a vote. The uncertainty hit sentiment hard, especially after earlier optimism had pushed bitcoin near $66,000.
Liquidations pile up
The sudden reversal caught leveraged longs off guard. Over $42 million in long positions were liquidated across major exchanges, adding to the downward pressure. The bulk of the liquidations hit positions opened in the $65,500–$66,000 range, where traders had bet on a breakout above resistance.
Oil steals the spotlight
While crypto took a hit, oil prices topped $101 a barrel for the first time in months. The jump in crude added to a risk-off mood across markets, with traders rotating into commodities amid geopolitical jitters. For crypto, that meant a double whammy: regulatory disappointment and a macro headwind.
What’s next for the CLARITY Act
Lawmakers are expected to resume discussions after the August recess, but the timing isn't great. With midterm elections looming, the window for passing major crypto legislation is narrowing. For now, traders are left watching the $64,000 support level — a break below that could open the door to further losses.
