Bitcoin dropped roughly 2% overnight as South Korea’s Kospi index plunged 11%, marking one of its steepest single-day losses in years. This turmoil in Asian markets sent ripples through global risk assets, hitting AI-related and layer-1 tokens particularly hard, with coins like FET, NEAR, and HYPE tumbling up to 10% within 24 hours.
Adding to the pressure, the U.S. Senate decided to put the Crypto Clarity Act on hold, shifting focus instead to a Russia sanctions bill and federal appointments. With less than two weeks before the August recess, lawmakers have little time left to resolve ongoing debates about government officials’ cryptocurrency holdings. This postponement leaves the bill’s future uncertain for 2026.
Market Reactions and Upcoming Events
Ethereum also took a hit, slipping 0.56% to about $1,880 after failing to break above the key $2,000 resistance on Monday. Meanwhile, traditional markets showed weakness with Nasdaq 100 futures down around 0.7%, gold falling nearly 1%, and silver dropping 1.5%.
On the derivatives side, futures taker volume flipped bearish, with short positions now comprising 51.5%, a sharp shift from recent bullish momentum. XRP’s futures open interest increased by close to 6% to 2.35 billion tokens, signaling growing trader engagement at these levels.
All eyes are now on the Federal Reserve’s interest rate decision scheduled for Wednesday, which could set the tone for both crypto and traditional markets in the weeks ahead.
This content is for informational purposes and does not constitute financial advice.
