Key Insights: While the CLARITY Act missed its Senate deadline, Bitcoin price gained 3.7% the same week. One decent ETF week sits against staggering $4.5 billion in year-to-date net outflows.
The U.S Senate left Washington for its August recess on Friday without passing the CLARITY Act, one of the most significant pieces of crypto legislation in years. Any further development will now resume after summer recess, with the Senate returning on September 14.
Bitcoin remained strong despite several negative developments last week. A major regulatory setback, a multimillion-dollar hardware wallet hack, and rising government bond yields all hit the market within five days. Yet Bitcoin held up around $65,200, gaining 3.7%.
Three things went wrong for crypto in the same week. Such situations typically put pressure on risk assets, but none of them caused a major price drop.
Bitcoin Price Chart | Source: TradingView The CLARITY Act is the bill that would define which U.S. regulator oversees which digital assets. Bitcoin and Ethereum would likely be classified as commodities by the CFTC. Other tokens would fall under the SEC as securities.
For the bill to move to the next stage, it needs to pass the Senate, but the Senate did not advance it before leaving for its August recess on Friday. Majority Leader John Thune had already started the first step of the cloture process. It is used to move a bill toward the 60 votes needed for passage.
So, that means the bill is delayed, not canceled. However, the further steps will have to wait until the Senate returns on September 14.
Coldcard, one of the most trusted hardware wallet makers for crypto, reported a serious security exploit linked to hacks involving millions of dollars. Hardware wallets were designed to keep private keys offline and protect funds from online threats. However, breaches like this have raised concerns about whether Bitcoin remains safe even if stored offline.
Usually, news of a major security breach like the Coldcard exploit would normally put pressure on Bitcoin’s price. However, Bitcoin price held firm despite news of the incident spreading across markets.
Rising U.S. government bond yields added further pressure on Bitcoin. Whenever bond yields rise, investors usually shift their investments away from riskier assets, such as crypto, toward safer investments like bonds. Yields continued to rise throughout the week, but this time, however, Bitcoin held up.
The delay to the CLARITY Act, a multi-million-dollar exploit hit Coldcard, and rising bond yields all came within the same five-day period. Despite these negative factors, Bitcoin price gained 3.7% instead of falling.
Spot Bitcoin ETFs saw inflows of $853.54 million for the week that ended on August 7, 2026. It marked the strongest weekly inflow since mid-April, according to SoSoValue data.
Bitcoin ETF Data | Source: SoSoValue However, while looking at the broader picture, Bitcoin ETFs are still in net outflows of around $4.5 billion year-to-date. One strong week doesn’t cover up six months of selling.
During the rally that took Bitcoin from $75,000 to its October 2025 record high of $126,000, weekly inflows into ETFs exceeded $1 billion for multiple weeks in a row. The week of August 7 reached $853 million.
The direction is correct, but the recovery remains comparatively low. That signals a temporary reversal in a longer trend that hasn’t yet confirmed a new direction.
The macro factors behind last week’s ETF inflows will face their next test on August 12, when the U.S. July CPI inflation data will be released. If inflation comes in higher than expected, rate-hike expectations may resurface. The dollar will strengthen and put pressure on risk assets like Bitcoin and other cryptos.
The U.S. jobs report was released on the previous Friday. It reported a loss of 23,000 jobs, compared with forecasts of an 80,000-job gain.
The weaker jobs data reduced expectations for further Federal Reserve rate hikes, weakened the dollar, and supported Bitcoin prices. Low rate-hike expectations generally benefit assets like Bitcoin because they do not generate yield on their own.
Bitcoin held above $65,000 through Monday morning but did not break the $66,000 level. It attempted to surpass that $66K mark, but failed multiple times during the inflow week.
That resistance level is the immediate technical target. The CPI data may determine whether Bitcoin gets another attempt to break it, or whether the market pulls back toward the $63,000 support zone.
Source: CoinDesk The CLARITY Act will return in September, and the Senate has opened its procedural path before leaving. Whether enough votes exist to clear 60 is still a genuine uncertainty.
The market has made it clear for now that it is not waiting for Congress to decide where Bitcoin trades. ETF flows, jobs data, and Wednesday’s inflation report are instead driving the market.
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