TLDR
- Bitcoin fell 48.5% from $126,272 to near $65,000 after the October 2025 crash.
- The October 10 crash wiped out $350 billion and liquidated 1.6 million accounts.
- The global stablecoin market stands at about $300 billion.
- The CLARITY Act aims to set US crypto market structure and reserve rules.
Bitcoin prices have fallen sharply in recent months. The token traded near $65,000 in late February. That marks a drop of 48.5% from its October high of $126,272. Market data shows that nearly $2 trillion in crypto value has been erased since the peak.
The recent downturn followed the October 10, 2025 crash. On that day, Bitcoin fell about $17,000 within minutes. More than 1.6 million trader accounts were liquidated. The total crypto market lost about $350 billion in value during the slide.
Investors moved funds into gold during the same period. Gold prices climbed from about $3,600 in mid-September to over $4,200 by mid-October. Analysts said markets treated crypto as a risk asset rather than a safe haven.
Concerns over US fiscal policy also added pressure. A government shutdown began on October 1 after Congress failed to pass a funding bill. On October 10, President Donald Trump announced plans for higher tariffs on Chinese imports. Markets reacted quickly, and liquidity tightened across sectors.
Stablecoins Gain Attention as Alternative
As volatility persists, attention has shifted to stablecoins. Stablecoins are digital tokens pegged to assets such as the US dollar or government bonds. Their value is designed to remain steady, and they are backed by reserves.
Global regulators have moved to create clear rules for stablecoin issuers. In the United States, lawmakers have debated two key measures. These include the GENIUS Act and the CLARITY Act. Both bills aim to define oversight and reserve requirements.
The European Union adopted the Markets in Crypto-Assets Regulation framework. Hong Kong approved its Stablecoin Ordinance. Singapore also introduced guidance through its central bank. Regulators require that stablecoins be fully backed by high-quality liquid assets.
The global stablecoin market is valued at about $300 billion. This remains below Bitcoin’s market capitalization. However, some investors expect steady growth if regulation becomes clearer.
Calls for Presidential Support of CLARITY Act
Industry leaders have called on President Trump to sign the CLARITY Act. Supporters argue that the law would provide legal certainty for exchanges and banks. They say this could strengthen the United States’ position in digital finance.
David Sacks, the White House AI and crypto adviser, spoke at the World Economic Forum in Davos. He urged Congress to pass market structure legislation without delay. He said clear rules would allow banks to engage with crypto firms under defined standards.
Advocates state that a signed CLARITY Act would align federal agencies. It would also outline consumer protections and capital requirements. Backers believe this step would encourage institutional investment and reduce regulatory disputes.
Critics, however, have questioned the role of US Treasury assets in stablecoin reserves. Some online commentators have warned about exposure to government debt. Others have argued that central bank digital currencies may compete with private tokens in cross-border settlements.
Future Direction of US Crypto Policy
The United States remains one of the largest crypto markets. Policy decisions in Washington influence global standards. Lawmakers continue to debate how to balance innovation with financial stability.
Bitcoin and other cryptocurrencies still attract long-term investors. Yet recent price swings have raised questions about their role as safe-haven assets. Stablecoins tied to real assets are viewed by some as more suitable for daily transactions.
Supporters of reform maintain that regulatory clarity is necessary for growth. They argue that signing the CLARITY Act would send a signal of commitment to the sector. The coming months may determine how the US positions itself in the evolving digital economy.
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