Bitcoin Drops Below $120,000, Triggering Plunge in Crypto Stocks

TradingKey – On Wednesday morning, July 16 (Asia time), Bitcoin (BTC)  remained under pressure, slipping below the $120,000 mark amid bearish sentiment. Over the past 24 hours, BTC declined nearly 1%, currently trading at $117,800.

Bitcoin 30-Minute Price Chart – Source: TradingView

The pullback triggered a sharp sell-off in U.S.-listed crypto stocks:

• Canaan Inc. (CAN): down 10%+
• Circle (CRCL): down nearly 5%
• Riot Platforms (RIOT) and CleanSpark (CLSK): down 3%+
• Coinbase (COIN), Robinhood (HOOD), and MicroStrategy (MSTR): also declined

The downturn follows the release of June CPI data, which supports the Federal Reserve’s decision to hold interest rates steady this month—removing a potential tailwind for Bitcoin.

However, attention now turns to “Crypto Week” in the U.S., where Congress is set to vote on three major bills:

• GENIUS Act: Establishes a framework for stablecoin issuance and investor protections
• CLARITY Act: Provides regulatory clarity for the broader crypto ecosystem
• Anti-CBDC Surveillance State Act: Aims to block the development of a U.S. central bank digital currency

The outcome of these votes could serve as a key catalyst for Bitcoin and related equities, potentially reversing the current downtrend.