This week, Bitcoin's price sharply dropped by 4% to $115,222 following the blockade of three key bills concerning cryptocurrencies in the U.S. Congress.
Blockage of Bills in Congress
The proposed bills aimed at regulating the cryptocurrency space failed during a procedural vote, with 13 Republicans breaking ranks. This decision resulted in a vote with a tally of 196-223 against the motion. The blockage of these bills leaves uncertainty regarding the future regulation of cryptocurrencies.
Market Reaction to the Price Drop
Following the block of proposed legislation, the market reacted sharply with downturns. Ethereum fell by 1%, XRP decreased by 1%, and Solana dropped by 2%. Data from CryptoQuant indicates that Bitcoin holders pulled out $3.5 billion in the past day, with over 56% of these withdrawals coming from long-term wallets.
Political Consequences and Future of the Bills
The congressional uncertainty also impacted the stock markets. Shares of Riot Platforms fell by 3.3%, Mara Holdings decreased by 2.3%, and Coinbase slipped by 1.5%. Leadership hinted at the possibility of another vote, but further steps remain unclear.
The situation with the bills highlights the volatility of the cryptocurrency market and political fragmentation, complicating predictions about future developments.
