Bitcoin Short-Term Holders Sell Off Amid US Clarity Bill Setback

Bitcoin prices dropped below $76,000 on Monday as markets reacted to the U.S. Senate’s failure to secure enough votes for the Clarity Act, a bill aimed at clarifying cryptocurrency market structures. The setback triggered the largest single-month sell-off by short-term holders since August, with on-chain data showing a surge in BTC moving from wallets to exchanges.

According to data provider CryptoQuant, short-term holder inflows to exchanges rose from approximately 19,400 BTC to 33,100 BTC, including 23,200 BTC moved at a loss. Major exchanges saw significant activity: Kraken received over 6,000 BTC—well above its typical 2,000–3,000 BTC range—while Binance absorbed more than 10,000 BTC. Coinbase Advanced saw 7,300 BTC, closer to its usual volume.

The sell-off was concentrated among investors who recently purchased Bitcoin, with prices dipping as low as $74,900 during the session. Technical indicators remain weak: the daily RSI has retreated to near 50 from overbought levels in August, and Bitcoin is currently testing support between $75,000 and $76,000 after failing to sustain gains above $80,000.

While short-term momentum remains weak, key technical support lines are still holding. The next critical focus will be whether the recent sell-off stabilizes quickly and if Bitcoin can maintain its $75,000 support level in the coming days.