Bitcoin (CRYPTO: BTC) is struggling to hold $60,000 as market observers look to the CLARITY Act passage in July as potential next catalyst.

The Role Of Critical Crypto Legislation

In a Schwab Network episode on June 26, Adam Lynch noted that Bitcoin has also fallen below its 200-week moving average near $62,000, a level that has historically marked longer bear-market phases.

The sell-off comes as Ethereum (CRYPTO: ETH) faces its own pressure, with the Ethereum Foundation reportedly cutting more than 50 jobs, or about 20% of its workforce.

Lynch said July could be critical for crypto legislation, with the window between the July 4 recess and the August break viewed as "now or never" for the Clarity Act.

If Congress fails to move before the midterm election cycle dominates Washington, he warned that meaningful progress may not return until 2028 or 2029.

The bill still faces unresolved concerns, including ethics questions tied to President Trump’s family crypto holdings.

Institutional flows are also weakening. Lynch said spot Bitcoin ETFs have seen more than $3 billion in outflows this month, averaging roughly $300 million a day.

He described the selling as legacy holders liquidating and rebalancing portfolios rather than a full retreat from crypto but said it remains a negative signal for the market.

What’s Next

Lynch said crypto needs a fresh catalyst, whether from regulatory clarity, renewed ETF inflows or improving macro conditions.

The broader crypto market has erased more than $2.2 trillion since October 2025, marking a drop of more than 50%.

With Bitcoin is currently testing major support and Washington’s legislative calendar narrowing, the next few weeks could shape whether crypto stabilizes or faces another leg lower.

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