Bitcoin climbed 0.8% on Tuesday, hitting $64,360 in a move that crushed overleveraged traders. The rally wiped out $35 million in short positions as the market reacted to news that the Senate could vote on the CLARITY Act before the recess.
The price action was brutal for shorts. Out of $42 million in total liquidations during the 24-hour window, 83% came from short bets getting blown out. Longs absorbed $58 million in losses, but shorts took the real hit. Bitcoin held above $63,500 for most of the session except for two dips to $63,300 and $63,400, suggesting solid demand at that level.
Polymarket traders aren't buying the CLARITY Act hype anymore. Odds of passage in 2026 fell to 25% by Tuesday afternoon from 27% a day earlier. Senate Majority Leader John Thune said the bill would get a vote before recess, but with less than three days left and a track record of similar promises that never materialized, the market's skepticism tracks. If the legislation dies, bitcoin's year-end move depends entirely on macroeconomic conditions rather than crypto-friendly legislation.
Bitfinex analysts expect bitcoin to stay dependent on real yields and continue trading between $62,000 and $65,000. The $64,360 peak marks the upper range, but without a clear catalyst beyond the CLARITY Act vote, sustaining a breakout higher looks tough.
This content is for informational purposes only and should not be considered financial advice.
