Bitcoin remained above $64,000 on Wednesday despite sharp intraday movements, while the prospect of the US CLARITY Act becoming law this year suffered a further setback. Prediction market Polymarket now puts the legislation’s chances of passing at only 15%, down from 27% on Monday.
The cryptocurrency traded between $63,900 and $64,706 during the session. Its relatively modest rise was enough to inflict significant losses on traders betting against it, with short sellers accounting for $148m of the $216m in liquidations recorded across the wider crypto market.
Bitcoin repeatedly slipped below the $64,000 mark but recovered quickly, a pattern which suggested sustained buying support. However, rallies were consistently checked above $64,400, limiting the broader bullish momentum.
That ceiling remained in place until 08:30 EST, when bitcoin dropped from $64,466 to its daily low of $63,900 in little more than an hour. The market then reversed sharply, with bitcoin climbing to a session high of $64,706.
At 12:53 EST, it was trading just below $64,600, representing a daily gain of 1.1% and taking its market capitalisation close to $1.3 trillion. The move also placed bitcoin slightly above the $63,000 to $63,600 consolidation range recorded on 4 August, despite a marked increase in 24-hour volatility.
For the second consecutive day, short sellers were hit hard even though bitcoin’s gains were relatively limited. Data from Coinglass showed that short positions made up $45m of the nearly $52m in leveraged bitcoin liquidations.
Across the entire cryptocurrency market, total liquidations reached about $216m. Short trades accounted for $148m of that figure, highlighting the pressure placed on traders who had expected prices to fall.
The CLARITY Act is regarded by analysts as one of bitcoin’s most important potential catalysts this year. However, with fewer than 48 hours remaining before Congress begins its recess, its passage through a divided US Senate now appears increasingly difficult.
Reports late on Tuesday said Senate Majority Leader John Thune intended to file a cloture motion on the bill. Later reports indicated that Senate Democrats planned to block the move. The Senate’s schedule for 5 August subsequently made no mention of the CLARITY Act, reinforcing concerns over the absence of bipartisan agreement.
Supporters of the legislation have nevertheless resisted suggestions that the effort is over. Coinbase Vice Chairman Ryan VanGrack said failure during the current legislative session would not permanently end the bill’s prospects, identifying September as a possible alternative opportunity for approval.
Sen. Cynthia Lummis, one of the principal architects of the measure, also remained positive about its long-term prospects. She acknowledged, however, that negotiations on the legislation’s most contentious points could continue throughout the weekend.
Prediction markets have taken a considerably more pessimistic view. Polymarket users have reduced the estimated probability of the CLARITY Act becoming law in 2025 to 15%, a fall of 12 percentage points from Monday’s 27% figure.
Punchbowl News reported that Senate Democrats planned to deny cloture on the CLARITY Act, a move that would leave the landmark cryptocurrency market-structure bill facing further uncertainty as lawmakers approach their recess.
