Crypto Market Slips on Senate Bill and Altcoin Leverage Risk

The crypto market dropped 1.82% over the last 24 hours, ending a multi-day streak of gains.

While the broader trend remains positive—with a 3.89% weekly and 25.18% monthly increase—today’s pullback reflects a convergence of three pressure points: Bitcoin consolidation, new U.S. regulation fears, and leveraged altcoin positions flashing warning signs.

New Senate bill revives SEC fears for XRP and altcoins

On July 23, a new Senate draft bill proposed a clearer split in crypto oversight, assigning the CFTC control over commodities like Биткойн and Етериум, while the SEC would handle securities. While the long-term framework aims to bring clarity, traders reacted swiftly to the short-term risk: stricter enforcement.

The bill offers no clear definition for most altcoins, raising fears that tokens like XRP could face renewed SEC scrutiny. XRP dropped 6% following the announcement, as the market braced for potential enforcement actions.

Overheating altcoin futures trigger liquidation concerns

Altcoin leverage has reached dangerous levels. Open interest across Етериум, Solana, and XRP perpetual futures spiked to $44 billion—two standard deviations above historical norms. At the same time, funding rates hit 0.0136%, forcing long-position holders to pay $32.9 million per day to maintain their trades.

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Such extreme positioning often precedes liquidations or flash crashes, especially when paired with bearish catalysts like regulatory uncertainty. The combination has introduced fragility into the altcoin market just as Bitcoin stalls after a +25% 30-day run.

Consolidation or correction?

What began as a natural cool-off after a major Биткойн rally is now showing deeper signs of unease. With leveraged positions peaking and lawmakers tightening oversight, short-term volatility is likely. The question now: can the market absorb these pressures or will it break lower before rebuilding?

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.