Bitcoin staged a modest recovery to trade near $61,750, up 1.4% on the day, after deeply oversold conditions triggered by multiple headwinds. The rebound comes as Senator Cynthia Lummis fiercely defended the Digital Asset Market Clarity Act (CLARITY Act) against banking sector opposition, while a new NYDIG report highlighted overlapping pressures that have weighed on crypto prices.
CLARITY Act nears Senate vote, Lummis pushes back on Dimon
The CLARITY Act (H.R. 3633), which would clarify crypto regulation by placing many digital assets under the CFTC while leaving security-like tokens with the SEC, is approaching a full Senate vote after passing the Banking Committee in May 2026. Senator Lummis warned that failure to pass the bill would cede U.S. leadership in digital finance to foreign jurisdictions. She directly rebutted JPMorgan CEO Jamie Dimon, who argued that stablecoin provisions could allow bank-like reward programs without equivalent safeguards, creating an uneven playing field. Lummis called Dimon's interpretation “incorrect or misleading,” accusing banks of fearing competition for deposits.
Bitwise CIO Matt Hougan offered a contrasting view, stating that the CLARITY Act “doesn’t matter anymore” because regulatory uncertainty has largely eased, thanks in part to the GENIUS Act passed in 2025. He believes institutional interest in tokenization will continue regardless.
NYDIG: Bitcoin’s slide has no single cause
Greg Cipolaro, global head of research at NYDIG, argued that Bitcoin’s drop below $60,000 to a fresh cycle low resulted from several overlapping factors. The AI trade is siphoning capital as both sectors attract emerging-tech investors. A looming wave of mega tech IPOs—including SpaceX, OpenAI, and Anthropic—is prompting institutions to raise cash, reducing crypto demand. Industry-specific shocks include Treasury Secretary Scott Bessent’s revelation of a $1 billion seizure of Iranian-linked crypto assets, renewing quantum computing fears after new research suggested cryptographic systems could be compromised sooner, and Strategy (MSTR) selling just 32 BTC. Though the sale was tiny, Cipolaro noted it psychologically challenged the narrative of Strategy as a perpetual buyer.
Has Bitcoin found a bottom?
Onchain indicators show a meaningful reset: the MVRV ratio has fallen to 1.2 and the share of supply in profit slipped below 50%—levels historically near major bottoms. However, the 53% drawdown from October’s $126,000 peak is modest compared to past cycles, and the current downturn is only 242 days old versus the typical year-long bear markets. Cipolaro concluded that whether a low is in place depends on whether institutional adoption has structurally altered Bitcoin’s cycle or merely delayed a deeper correction.
