Why Is Crypto Crashing Today? Bitcoin Slides to $76,000 as the CLARITY Act Vote Wobbles

Why Is Crypto Crashing Today?The short version: the market spent the weekend pricing in a win for the CLARITY Act, and then spent Tuesday morning taking that bet back off the table.$Bitcoin is trading around $76,010, down roughly 3.2% on the day and about 3.4% on the week. $Ethereum is at $2,414, off 3.7%. $Solana is barely hanging on to the $100 handle at $99.13. Almost the entire top 15 is red, and none of it is happening because of a hack, an exchange blowup or a whale dumping into thin liquidity. It is happening because of a procedural vote in the United States Senate scheduled for 2:15 p.m. ET.Prediction markets tell the story better than any chart. Odds of the CLARITY Act passing this year had climbed above 30% during US trading hours on Monday, helped by reports that Republican revisions had won over hesitant Democrats. By Tuesday morning in Asia those odds had slumped to 18%, and by the time European desks were fully awake they had drifted closer to 11%. Bitcoin, which had reclaimed $78,400 on Monday, gave the entire move back.This is what a binary event does to a leveraged market. Traders do not wait for the result. They de-risk into it.AdvertisementWhat Is the CLARITY Act...