Bitcoin (CRYPTO: BTC) price slipped below the key $64,000 support level as spot exchange-traded funds (ETFs) recorded outflows for a second consecutive day. Sentiment was also weighed down by declining odds that the CLARITY Act will be signed into law, adding to the cryptocurrency’s recent selling pressure.
Spot Bitcoin ETF Outflows Rose as CLARITY Act Odds Fell
Bitcoin price retreated for the fourth consecutive day as American investors sold their ETF holdings for two straight days. Data shows that Bitcoin ETFs lost over $240 million in assets on Friday after losing $225 million a day earlier.
As a result, the net weekly inflow was $33 million, lower than the previous week’s $75 million. BlackRock’s IBIT ETF lost over $212 million on Friday, while Fidelity’s FBTC shed over $27 million.
Falling Bitcoin ETF inflows normally send a signal that demand among American institutional investors is falling.
The selling coincided with several major events. For one, there are doubts on whether the Senate will pass the CLARITY Act. While the most important sections have bipartisan support, Democrats and consumer watchdog groups have opposed it.
They argue that the current provisions will not bar President Donald Trump and his family members from issuing tokens. Recent disclosures showed that Trump pocketed over $1.4 billion in crypto profits last year, even as most supporters lost billions.
Odds of the CLARITY Act being signed into law have dropped to just 35% on Polymarket. Earlier this year, these odds were 75%.
Polymarket odds of CLARITY Act being signed into law | Source: Polymarket
The CLARITY Act aims to change how the crypto industry is regulated by giving the more lenient CFTC more power than the SEC. It also sets rules for stablecoin rewards and how digital assets are classified.
Bitcoin’s weakness also coincided with the rising odds that the Federal Reserve will hike interest rates amid the ongoing US-Iran war. Odds of a rate hike happening this year have jumped to over 70%. In most cases, Bitcoin and other risky assets underperform the market in a high interest rate environment.
Bitcoin Price Dropped After Hitting a Key Resistance
Technicals show that BTC price retreated after hitting the crucial resistance level of $67,018, its highest level on June 15. That is a sign that it formed a double-top pattern, a common reversal sign.
The coin also found resistance at the 100-day Exponential Moving Average (EMA). It also moved below the Supertrend indicator.
Therefore, the coin will likely remain under pressure as long as it is below the resistance level of $67,018. A move above that price will point to more gains, potentially to the psychological level of $70,000.
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