Bitcoin Crash Dominated By US Selling, CryptoQuant Data Shows

Coinbase CEO Brian Armstrong has publicly opposed a draft Senate bill concerning cryptocurrency, warning that it poses a threat to decentralized finance (DeFi) and tokenized equities, while also indicating potential overreach by the SEC. Senator Cynthia Lummis has suggested that discussions regarding the bill may be postponed.

Bitcoin's derivatives market is undergoing a significant reset, with Binance's open interest dropping over 31% from its October peak as futures-led selling pressure diminishes. This decline follows a speculative surge in 2025, where open interest reached an all-time high of over $15 billion. CryptoQuant contributor Darkfost suggests that such a deleveraging phase often coincides with meaningful cycle lows, indicating a potential market bottom.

Coinbase CEO Brian Armstrong has publicly rejected the U.S. Senate Banking Committee's latest draft of the CLARITY Act, arguing that it would worsen the regulatory environment for the cryptocurrency industry in the United States. Armstrong expressed concerns about the bill's implications for crypto operations and innovation.

Bitcoin has shown renewed strength as inflows to spot Bitcoin ETFs have resumed, although analysts question whether the price can reach the $105,000 mark. Recent data indicates a fluctuating market, with Bitcoin's price briefly hitting $90,000 before facing challenges in sustaining this rally.

Coinbase has withdrawn its support for a proposed cryptocurrency market structure bill, with CEO Brian Armstrong citing numerous issues with the legislation. This decision reflects ongoing challenges in the regulatory landscape for digital assets.

Bitcoin (BTC) has surged past the $96,000 mark this week, driven by significant inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) and a favorable U.S. Consumer Price Index (CPI) report, which alleviated inflation concerns. This price movement marks the end of a prolonged consolidation phase, leading to a wave of bearish liquidations as short sellers exited their positions.

The Zcash Foundation announced the conclusion of an investigation by the U.S. Securities and Exchange Commission (SEC), which began with a subpoena regarding certain crypto asset offerings. This decision has led to a 12% increase in the price of Zcash's native token, ZEC, and a 39% surge in trading volume over the past 24 hours.

The cryptocurrency market is experiencing a notable surge, with Bitcoin, Ethereum, and Dogecoin seeing significant price increases. This uptick follows the release of positive US economic data, highlighting improvements in unemployment and consumer spending, alongside potential regulatory changes from a proposed bill.