BTC’s Surge Past $93K Amid CLARITY Act Delay Stirs Market Frustration

Bitcoin’s (BTC) price made a new weekly high of $93,500 on Tuesday as lawmakers pushed back deliberations on the long-awaited CLARITY Act, a bill designed to define crypto market structure in the United States.

Key takeaways:

• Bitcoin continues to rally despite the CLARITY Act markup being pushed to late January.

• Exchange netflows stayed low, and the SOPR hovered near 1, signaling minimal profit-taking.

• Retail demand for BTC remains low during this recovery rally, as liquidity remains thin.

Bitcoin gains as volatility compresses after CLARITY Act delay

Senate committees, including Agriculture and Banking, postponed planned markups of the CLARITY Act to the final week of January. Senate Agriculture Committee Chair John Boozman confirmed the delay, citing unresolved disagreements over stablecoin incentives, DeFi oversight, and agency jurisdiction. 

While earlier expectations had already shifted to 2026, the latest pause further clouds the prospects for swift legalization. Yet BTC price action suggests traders are largely unfazed.

Over the past 24 hours, Bitcoin traded in a tight range, briefly dipping below $91,000 before breaking above $93,500 during the New York trading session. The lack of aggressive selling during the CLARITY Act delay contrasts with prior regulatory scares, when exchange inflows typically surged.

This time, exchange netflows remained muted, signaling that investors are not positioning for an imminent downside shock, according to XWIN Research. 

The Spent Output Profit Ratio (SOPR) data reinforces that calm. The metric hovers around or slightly below 1, the SOPR indicates limited profit-taking and onchain spending overall. This could be interpreted as a patient market, with holders extending their time horizon rather than rotating capital.

At a broader level, the CLARITY Act is increasingly viewed as an integration milestone rather than a binary risk event. Even before formal passage, Bitcoin appears to be transitioning toward a more “institutional-grade” holding profile.

Related: Bitcoin ‘OG whales’ sell $286M, but odds of $100K BTC remain high

ETF liquidity and retail absence temper optimism

However, this patience comes with caveats. Crypto Analyst Darkfost noted the largest liquidity drawdown ever recorded in spot Bitcoin exchange-traded funds (ETFs). With an average realized price near $86,000, many ETF inflows since the October 2025 all-time high are now underwater. More than $6 billion has exited spot ETFs, though flows have stabilized over the past two weeks.

Meanwhile, retail participation remains largely absent. CryptoQuant data indicates that 30-day BTC demand from small buyers (between $0 to $10,000) shows deeply negative readings, a stark contrast to prior bull phases. 

This suggests the current range is supported mainly by larger players. Adding to caution, the Coinbase premium index has yet to flip bullish. Market commentator CryptoGodJohn said,

“Biggest indicator to keep an eye on is Coinbase premium. Until we get a positive flow, I don’t think we will see a strong reversal.”

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