Ethereum (ETH) led losses among major cryptocurrencies on Friday after a Politico report cast doubt on whether the Digital Asset Market Clarity Act has enough Democratic support to pass the Senate.
The broader cryptocurrency market fell 1.5% over the past 24 hours, pulling the total market capitalization down to around $2.23 billion amid mounting regulatory and geopolitical uncertainty.
Ethereum’s price dropped as much as 2.7% in the last 24 hours, trading at around $1,837, with the altcoin now down nearly 40% for the year.
The leading altcoin trades more than 60% below its record high of almost $5,000, a level it reached in August last year, underscoring the depth of its prolonged decline.
Retail sentiment around Ethereum on Stocktwits fell to “bullish” from “extremely bullish” territory, with chatter on the platform remaining at “high” levels as traders digested the regulatory news.
According to Politico, Senator Bernie Moreno (R-OH) said the updated regulatory bill is likely to be released following a meeting with President Donald Trump to discuss flexibility on the bill’s ethics clause, which restricts government officials from holding cryptocurrency-linked assets.
Several Democrats have said they would not support the version of the bill set for release Thursday because it lacks strong ethics provisions, adding a significant political obstacle to the legislation’s passage.
The CLARITY Act, which aims to divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, passed the House in July last year with bipartisan support.
To clear the Senate, the bill needs 60 votes to overcome a filibuster, but Republicans hold only 53 seats, making Democratic backing a critical and currently uncertain requirement.
Bitcoin (BTC) dropped around 1.7% in the last 24 hours, with its price attempting to hold above $63,000 in early morning trade as retail sentiment on Stocktwits trended in “bearish” territory.
Crypto analyst Ted Pillows warned that since Bitcoin’s latest attempt to climb back above $65,000 failed, it needs to hold above $62,500 or the bounce for the cryptocurrency may be over.
Strategy (NASDAQ: MSTR), the largest corporate digital asset treasury with Bitcoin on its balance sheet, dropped as much as 2.1% in premarket trading, with retail sentiment on Stocktwits dipping to “bearish” from “neutral” territory.
Tom Lee-backed Bitmine Immersion Technologies (BMNR), the largest digital asset treasury with Ethereum on its balance sheet, fell over 2% in pre-market trade, with retail sentiment trending in “neutral” territory.
Dogecoin (DOGE), Solana (SOL), and Ripple’s XRP each fell around 2%, while privacy-focused Zcash (ZEC) dropped approximately 2.4% in the last 24 hours to around $533.
Nearly $400 million in crypto positions were liquidated over the past 24 hours, with long traders bearing the brunt of the damage, accounting for $335 million of total losses.
The sell-off was further compounded by weakness in AI stocks and ongoing geopolitical tensions stemming from the conflict between the U.S. and Iran, adding external pressure to an already fragile market.
