Crypto longs worth $570 million wiped out as Clarity Act fails
- Crypto exchanges liquidated about $571 million in bullish futures positions after the Clarity Act failed to clear the Senate’s 60-vote procedural hurdle.
- Bitcoin and ether longs suffered the largest losses, at roughly $190 million each, as markets reversed a rally fueled by hopes that the bill would advance.
- Bitcoin remained within its recent trading range at about $75,700, while regulatory action now shifts to the executive branch, the CFTC and the SEC.
Crypto traders holding long, or bullish, futures bets have taken a sharp hit over the past 24 hours after the Clarity Act failed a Senate procedural vote.
Exchanges liquidated about $571 million in long positions in that window, the highest tally since Aug. 22, according to CoinGlass. Shorts, or bearish bets, accounted for only about $100 million of the wipeout.
Bitcoin and ether longs absorbed the heaviest damage, with roughly $190 million liquidated in each. Analysts had flagged ether and DeFi tokens as the assets most likely to outperform bitcoin if the Senate voted yes. XRP longs lost about $30 million, while Solana longs lost about $22 million.
The data shows markets were positioned for continued upside, largely on hopes the Clarity Act would advance. Those hopes strengthened earlier this week after reports that President Donald Trump was willing to make concessions on the bill’s ethics provisions. The market responded: bitcoin, the largest cryptocurrency by market value, rose to nearly $80,000 from about $77,000 on Monday.