Bitcoin plunged about 5% to $75,000, and Ether lost nearly 5% to $2,357 after yesterday's procedural vote on the CLARITY Act in the US Senate failed. Only 50 senators voted to end debate and proceed to consideration; cloture requires 60 votes. Republicans control 53 seats, so the bill needed support from at least seven Democrats—yet some senators who had spent months negotiating the text ultimately voted against it. The vote triggered roughly $770 million in liquidations in 24 hours, of which about $191.4 million hit long Bitcoin positions and $203.5 million struck Ether longs.

The causal chain centers on a broken compromise over ethics provisions. Over the weekend Republicans circulated a revised 635-page draft that included concessions on conflicts-of-interest rules and, by some accounts, won Trump's agreement to much of the new language. But Democrats insisted on tougher edits around crypto income for the president and his family, and Republican concessions were insufficient to secure the necessary votes. Senator Cynthia Lummis, the bill's chief author and advocate, accused Democrats of dragging their feet, while Republican Majority Leader John Thune blamed the failure on Democrats choosing politics over sound policy.

Polymarket pricing of CLARITY Act passage in 2026 collapsed to about 7% after the vote; the market had priced materially higher odds before the procedural tally. That gap between market expectations and reality explains the scale of the sell-off: participants entered the day positioned for a partly priced-in positive outcome rather than from neutral stances, so the procedural defeat hit inflated positions harder than it would have hit a market that had priced in failure.

Yet the sharp drop did not turn into a structural trend reversal. Despite the sell-off, both Bitcoin and Ether remain above key moving averages, and the market structure still points to the preservation of the recent bullish phase. The CLARITY setback was the first real stress test of the rally: the market digested the negative catalyst with a sharp but controlled move that did not break deeper technical supports, which, if violated, would have opened the door to a much larger correction.

In my view the market's ability to keep the wider bullish structure intact after such pronounced legislative disappointment matters more than the headline drop. Until lower technical levels are breached, treat the news-driven sell-off as a temporary repositioning ahead of the Fed meeting rather than the start of a new down cycle. The ultimate test of the rally's resilience will be the market's reaction to the Fed decision.

A technical picture for Bitcoin unveils that buyers are targeting a return to $76,900, which opens a direct path to $78,200 and then to $79,400; a break above $79,400 would signal attempts to restore the bull market. On the downside, expect buyers at $75,300. A move below that area could quickly drag BTC toward $72,800. A farther downside target is $71,100.

A technical picture for Ethereum shows that a confirmed hold above $2,433 opens a path to $2,486. A farther target is around $2,551; a break above that level would indicate strengthening bullish sentiment and renewed buyer interest. On the downside, expect buyers at $2,367. A drop below that area could push ETH toward $2,320. A farther target is $2,274.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.