Bitcoin has fallen sharply over the last day as short-term holders begin to exercise caution following the major Clarity Act setback witnessed yesterday.
Notably, the market has seen Bitcoin selling activity skyrocket, especially among its short-term holders, causing a sharp increase in exchange inflows within 24 hours.
Bitcoin holders sell at a loss
Following the surge in selling activity seen in the last day, recent data from crypto analytics platform CryptoQuant shows that 23,200 BTC worth about $1.79 billion have been sent to exchanges at a loss.
The sudden increase in exchange inflow arrived as the U.S. Senate failed to advance the long-awaited Clarity Act, triggering fear among traders.
Notably, the Senate rejected the crypto Clarity Act bill in a 49-50 procedural vote, falling short of the 60 votes required to advance the legislation. This event has caused a buzz in the crypto ecosystem as all major crypto assets responded with sharp declines in their prices over the last day.
Bitcoin exchange inflows surge 71%
Following the unfortunate event, exchange inflows have surged from about 19,400 BTC to 33,100 BTC, marking a massive increase of 71% in just one day.
While the negative trend has seen Bitcoin short-term holder capitulation hit its highest level in the past month, it also caused Bitcoin to decrease sharply, falling to around $74,000 from its recent high of around $78,000.
Nonetheless, Binance led the rapid inflow surge, recording over 10,000 BTC in inflows in just one day. Kraken also saw its inflows rise from a 2,000–3,000 BTC range to over 6,000 BTC the same day.
