Crypto traders braced for a total wipeout this week but Bitcoin had other plans

"There was little evidence that traders had positioned themselves for its passage ahead of the vote," Kooner noted. "With few market participants betting on the bill’s approval, there were correspondingly few positions to unwind. The more important consequence is that the industry remains without clear statutory rules, prolonging regulatory uncertainty."

The spot price remained resilient even though the 49-50 Senate cloture vote failure triggered an immediate wave of violent liquidations. In the first 24 hours after the vote, crypto traders holding long, or bullish, futures positions saw $571 million liquidated. It also hit U.S.-focused crypto infrastructure providers, with publicly traded firms like crypto exchange Coinbase Global (COIN) and stablecoin issuer Circle Internet (CRCL) sliding 10% in the aftermath of the vote. Both shares rebounded Friday.

Price consolidation and positive regulatory outlook

Ilya Kalchev, an analyst at Nexo Dispatch, said bitcoin’s recovery after the Clarity vote, the Federal Reserve’s rate hike, and the long liquidation event point to consolidation rather than an immediate breakout.

“Bitcoin’s next move is now linked to a catalyst that it does not have yet,” Kalchev said. “Having absorbed three separate shocks this month without a real repricing, the more likely near-term path is range-bound trading rather than a breakout.”