$480 million in crypto liquidations after CLARITY Act fails Senate vote
The failure of the Digital Asset Market CLARITY Act to pass a key procedural hurdle in the U.S. Senate led to significant losses for leveraged cryptocurrency traders, with nearly $480 million wiped out within 24 hours according to CoinGlass data. Over 100,000 positions were liquidated as long bets accounted for most of the damage at $363 million compared to short positions totaling around $114 million. Traders had positioned themselves ahead of Tuesday's vote based on optimism fueled by reports that President Donald Trump was open to concessions in the bill. However, signs emerged early that Senate Democrats were not supporting it, leading to a market unwind before the final 49-50 cloture failure result became clear. Bitcoin dropped below $75,000 after peaking near $80,000 earlier in the week and settled around $75,800. XRP saw its worst performance among major cryptocurrencies with a nearly 10% decline while U.S. spot Bitcoin ETFs experienced their largest single-day outflow since June at about $450 million.
Topics: Bitcoin cryptocurrency regulation trading liquidations