Bitcoin's price tumbled to $61,300 on Wednesday, its lowest point since February, marking a 25% decline this month and extending one of the most volatile periods for the cryptocurrency in 2026. The digital asset has now fallen more than 30% from its January highs, underperforming other major risk assets.
The sell-off is notable not only for its scale but for its source. Analysts tracking blockchain data report that long-term holders—investors who have held Bitcoin for at least 155 days—have begun liquidating aggressively after remaining largely inactive from February through April. In the first days of June, these holders offloaded approximately $2.4 billion (€2.1 billion), with a significant portion coming from those who bought above $90,000.
The turmoil has spread to derivatives markets. Volmex's 30-day implied volatility index for Bitcoin climbed to 57.4, its highest since early April, as traders rushed to purchase protective options. Meanwhile, US-listed spot Bitcoin ETFs recorded their thirteenth consecutive day of outflows on Wednesday, with investors withdrawing a further $50 million (€43 million).
Regulatory Uncertainty in Washington
Bitcoin's market woes are unfolding against a backdrop of legislative uncertainty in the United States. The Digital Asset Market Clarity Act (CLARITY Act), a key industry priority that would divide oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), passed the Senate Banking Committee on 14 May but faces significant hurdles.
The bill must still be reconciled with a separate version from the Senate Agriculture Committee, which oversees the CFTC. Disagreements between the two committees remain unresolved. With only about eight weeks of Senate floor time before the summer recess and midterm election campaigning, the legislation competes for attention with must-pass bills on surveillance, immigration, housing, and a farm bill.
US Treasury Secretary Scott Bessent urged senators on Wednesday to pass the CLARITY Act before the recess, describing it as part of efforts to make the US “the innovation capital of the world.” However, the bill's path is further complicated by a public dispute between the banking industry and the crypto sector over stablecoin regulation.
JPMorgan CEO Jamie Dimon has been among the most vocal critics, arguing that stablecoin issuers would gain an unfair advantage if allowed to offer yield-bearing products without meeting the same regulatory standards as banks. “If you want to be a bank, be a bank,” Dimon stated in a Fox Business interview. The American Bankers Association, community banks, and credit unions have aligned with that position.
Senator Cynthia Lummis, who chairs the Senate's digital assets subcommittee, struck a more optimistic tone, writing on social media that lawmakers were “closer to a functioning digital asset market structure than we have ever been.”
For European investors, the developments in Washington are closely watched. The European Union has already advanced its own regulatory framework through the Markets in Crypto-Assets (MiCA) regulation, which came into force in 2023. MiCA provides a comprehensive legal framework for crypto assets across the 27 member states, offering clarity that the US currently lacks. The contrast between the EU's harmonised approach and the fragmented US legislative process highlights the differing regulatory philosophies on either side of the Atlantic.
As Bitcoin's price continues to slide, the broader implications for the European crypto market remain uncertain. While the EU's regulatory framework may provide a more stable environment, the global nature of cryptocurrency markets means that US legislative outcomes will inevitably influence investor sentiment across the continent.
