The crypto selling started before Tuesday's Senate vote. Nobody knew the result yet.
$BTC traded from $79,427 on Monday to $76,862 intraday Tuesday, and about $300 million of bullish crypto positions were liquidated in the final hour before the CLARITY cloture vote.
Then the bill failed to reach 60 and the move extended, down as much as 5.3% intraday to $74,910. Over the next 24 hours about $571M of bullish futures were liquidated, with $BTC and $ETH longs taking about $190M each.
Failure was the base case and had been priced for weeks. Crypto was trading with rates that day: the 20-year Treasury reopening tailed, clearing at 5.420% against a 5.400% when-issued yield. The vote only took away a possible offset to that rate move.
The bill is still alive. A motion to reconsider was entered, and the realistic next window is the lame duck, 9 Nov to 18 Dec.
#Bitcoin #Crypto #ClarityAct #Macro
$BTC traded from $79,427 on Monday to $76,862 intraday Tuesday, and about $300 million of bullish crypto positions were liquidated in the final hour before the CLARITY cloture vote.
Then the bill failed to reach 60 and the move extended, down as much as 5.3% intraday to $74,910. Over the next 24 hours about $571M of bullish futures were liquidated, with $BTC and $ETH longs taking about $190M each.
Failure was the base case and had been priced for weeks. Crypto was trading with rates that day: the 20-year Treasury reopening tailed, clearing at 5.420% against a 5.400% when-issued yield. The vote only took away a possible offset to that rate move.
The bill is still alive. A motion to reconsider was entered, and the realistic next window is the lame duck, 9 Nov to 18 Dec.
#Bitcoin #Crypto #ClarityAct #Macro
