CLARITY Act Shelved, Asian Selloff, and SHIB Surge Shake Crypto Markets

Bitcoin slid to $63,173 on July 28 as two converging shocks rattled digital asset markets. The U.S. Senate shelved the CLARITY Act to prioritize a Russia sanctions bill, making a floor vote on the landmark crypto regulation bill unlikely before the August 8 summer recess. South Korea's Kospi index simultaneously plunged 10%, its steepest single-session drop since mid-April, as chipmaker giants Samsung and SK Hynix led a broad risk-off retreat that sent fresh selling pressure into crypto markets.

The regulatory setback hit traders hard. Polymarket odds of the CLARITY Act passing in 2026 cratered to a record low of 37%, down from 82% in February, completing a five-month collapse in market confidence. Bitcoin, Ethereum, and XRP absorbed the brunt of the reaction, with more than $670 million liquidated across the crypto market in 24 hours. Of that total, $533 million came from bullish long positions, and the Fear and Greed Index registered deep in fear territory.

Meme Coins Defy the Downturn as Market Cap Holds Above $2T

Not every corner of the market followed Bitcoin lower. Shiba Inu surged nearly 28% over the past seven days to trade at $0.000005347, with a 24-hour gain of 8.9% on Monday that pushed trading volume to its highest level in months. Dogecoin and Pepe joined the rally as meme coin buyers stepped in while blue-chip tokens retreated.

Despite the turbulence, the global crypto market cap held at $2.26 trillion with $65.7 billion in total trading volume over 24 hours. Bitcoin's network dominance remained firm at 56%, a signal that capital is rotating within crypto rather than exiting the asset class entirely. All eyes now turn to the Federal Reserve's July 28 to 29 meeting, where markets broadly expect rates to hold, leaving crypto traders to weigh the Fed's tone against an increasingly narrow window for the CLARITY Act to become law before Congress recesses.