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Bitcoin is at $76,400 on Thursday. No rebound in sight, no reassuring signal either. The U.S. Senate has paused discussions on the Clarity Act, and the market responded swiftly: a 5% drop on Tuesday, followed by a 3% decline over the week as of 10:30 AM, according to CoinMarketCap.
The timing is brutal. The Clarity Act was supposed to be the next major legislative project for crypto after the Genius Act, passed in July. Its goal: to establish a clear framework for the sector as a whole. But the text remains stuck in the Senate corridors, caught between two camps that can’t agree on much. The Democrats have already approved it in broad strokes, the Republicans too, except the details are blocking everything. And in such situations, the market is the first to suffer.
It’s still unclear when discussions will resume.
Trump’s Interests at the Heart of the Blockage
One of the core issues is Donald Trump. His direct interests in cryptocurrencies generated over a billion dollars last year — a figure that weighs heavily in the debates. The Democrats want to better regulate these interests, a position the Republicans have rejected. And that’s causing a stalemate.
And it’s not the only point of friction. The issue of yield payments by stablecoin issuers hasn’t found consensus either. In short, two major issues are blocking a text that many in the industry awaited as a regulatory lifeline. The stablecoin sector, which has been seeking stronger institutional legitimacy for months, finds itself once again in limbo.
Result: uncertainty sets in, and bitcoin pays the price.
Molina: “Banks Will Move Forward Anyway”
Javier Molina, an analyst at eToro, takes a more measured view. For him, the suspension of the regulatory framework slows the integration of cryptos with traditional currencies and stablecoins — it’s inevitable. But he believes that banks and financial institutions will continue to move forward regardless. The momentum is there, and a legislative pause doesn’t stop it.
That’s the optimistic view. Because on the market fundamentals side, it’s more complicated. The U.S. Federal Reserve, with its more restrictive outlook, has been weighing on bitcoin for several weeks. Add to that a high leverage effect in the market, and you get a combination that makes corrections even more violent when they occur.
Bitcoin has attempted several times to break through the $82,000 to $83,000 zone. Failed each time. This level has become a psychological as well as a technical resistance.
Molina points to two areas to watch closely. First support: between $75,000 and $76,000. If this floor gives way, the next likely stop is between $69,000 and $70,000. It’s a significant drop from current levels, and probably not what holders hope to see.
To regain strength, bitcoin must climb back above $78,000 to $80,000 initially. Breaking through $83,000 would be the truly convincing signal — but that requires spot demand and strong institutional flows. Two things that are lacking when the regulatory framework remains unclear.
Not now, anyway.
What complicates the market reading further is that political uncertainty and monetary uncertainty are arriving simultaneously. The Fed tightening, the Senate blocking, leverage amplifying — it’s a difficult cocktail to manage for any asset, and bitcoin is no exception.
Institutional investors remain in wait-and-see mode. They watch the support levels, they watch Washington, they watch the Fed. Molina believes in their role to stabilize the market in the long run, but “in the long run” remains vague. As long as the Clarity Act sleeps in the Senate, it’s hard to give them a solid argument to enter massively.
Bitcoin is currently holding the $76,000 zone. But the support between $75,000 and $76,000 is thin, and the market knows it.
Hub: Bitcoin: Price, News, and Analysis
Frequently Asked Questions
Why did bitcoin fall to $76,400?
The U.S. Senate suspended discussions on the Clarity Act, causing a 5% drop on Tuesday and a 3% decline over the week according to CoinMarketCap. Regulatory uncertainty and the Fed’s restrictive outlook have increased the pressure.
What are the key support and resistance levels for bitcoin according to Javier Molina?
Molina identifies $75,000 to $76,000 as the first major support, then $69,000 to $70,000 if this level gives way. To resume its upward trend, bitcoin must break through $78,000 to $80,000, then $83,000 with the support of institutional flows.
Why It Matters
The Senate's decision to pause discussions on the Clarity Act underscores the ongoing uncertainty surrounding regulatory frameworks for cryptocurrencies in the U.S. This lack of clarity is significant as it can lead to increased volatility in the market, affecting investor confidence and hindering institutional adoption. As legislative efforts stall, the crypto market may struggle to regain momentum, reflecting broader concerns about regulatory support in this evolving landscape.
