Bitcoin dropped to $75,560, its lowest level so far in September, as global bond yields spiked to multidecade highs ahead of a Senate procedural vote on the CLARITY Act. An anonymous whale opened tens of millions of dollars in short positions on Bitcoin, Ethereum, and Zcash ahead of the vote.
Bitcoin fell to $75,560 at Tuesday's Wall Street open, erasing a run to $79,600 the day before, as traders braced for a key Senate vote and bond markets sold off worldwide. The moves came just hours before the CLARITY Act's procedural vote, which needs 60 votes to advance to a full Senate floor debate.
CLARITY Act vote keeps traders on edge
Consensus sees barely any chance the bill clears the procedural threshold, and Polymarket bettors gave it just 14% odds of becoming law in 2026 as of Tuesday. Trading firm QCP Capital said passage would potentially strengthen the medium-term case for institutional adoption by reducing regulatory uncertainty, but cautioned: "procedural progress does not guarantee final passage".
Bond yields surge to multidecade highs
Meanwhile, the US 10-year yield topped 5% for the first time since November 2023, climbing to 5.041%, a level last seen in June 2007. The average 10-year yield across the world's seven largest economies reached 4.285%, its highest since mid-2008. The UK 30-year yield hit 5.95% for the first time since March 1998, while Japan's 10-year touched 3.04%, a 30-year high.
Rising yields fed expectations of fresh interest rate hikes. The Federal Reserve is expected to raise its benchmark rate by 0.25% on Wednesday, with the Bank of Japan expected to follow on Friday. WTI crude oil neared $105 per barrel Tuesday, its highest level since early May, adding to inflation concerns tied to Middle East supply risks.
Whale opens large short position ahead of vote
An anonymous trader opened a $47 million short position on Bitcoin, alongside a $22 million short position on Ethereum and a $4 million short on Zcash, according to a report shared by X user Max Crypto. The trader has made roughly 2,300 trades with a 100% win rate so far.
Analyst Midas expects Bitcoin to fall sharply if the vote fails, potentially breaking below $70,000 and testing lower levels. Midas previously argued Bitcoin remains inside a descending structure and warned of a possible flashout toward $50,000, viewing $55K as the point where the bear market would finally end.
Sources: Cointelegraph.com News, CryptoPotato
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