Bitcoin this week delivered a serious shake-up, dropping sharply below the psychological $75,000 mark and dragging the entire market with it. Amid panic, traders are massively locking in losses, and the total capitalization of the crypto market has fallen by several percentage points, stalling at $2.55 trillion. Meanwhile, BTC dominance still clings on with a firm grip at 58.4%.
The main reason for this harsh sell-off was the long-awaited vote in the U.S. Senate on the CLARITY Act bill, which took place this Friday. Lawmakers introduced new tough rules for monitoring stablecoins, instantly triggering an outflow of liquidity from major exchanges. The situation was worsened by fresh inflation data (the PPI index)—it rose more than expected, and now investors are panicking that the Fed, at its meeting on September 16, will again raise interest rates.
As a result, futures saw a real bloodbath: according to Coinglass, over the past day alone more than $420 million in long positions were liquidated. Bitcoin is now trying to find a bottom around $73,500, and if this support fails to hold, the next stop will be the global level of $70,000. Speculators are horrified and fleeing the ship, but big whales are using this sell-off to quietly buy up the now-discounted coins.