Crypto Traders Lose $571 Million In Long Liquidations As Clarity Act Fails

Bullish crypto futures traders took a heavy hit over the past 24 hours, with exchanges liquidating roughly $571 million in long positions after the Clarity Act failed to clear the Senate’s procedural vote.

Bitcoin And Ether Bear The Heaviest Losses

The wipeout marked the largest single day liquidation total since late August, according to data from CoinGlass, with bearish short positions accounting for only about $100 million of the total. Bitcoin and ether longs each absorbed roughly $190 million in losses, while XRP longs lost about $30 million and Solana longs saw around $22 million wiped out. Analysts had previously pointed to ether and DeFi-related tokens as likely to outperform bitcoin if the bill advanced, which helps explain the scale of losses concentrated there.

Market Optimism Reversed Quickly

The liquidations followed a rally earlier in the week, when bitcoin climbed to nearly $80,000 from about $77,000 on hopes that the president would make concessions on the bill’s ethics provisions. That optimism unwound roughly 24 hours before the vote, as reports emerged that Democrats were holding firm, a position that ultimately proved accurate when the bill failed the Senate’s 49-50 procedural vote. With the bill stalled, regulatory momentum has shifted toward the SEC and CFTC, which can continue independent rulemaking in the meantime.

Bitcoin was trading around $75,700 at the time of writing, still within its recent range despite the liquidation wave.