Bitcoin (CRYPTO: BTC) price slipped below the key $64,000 support level as spot exchange-traded funds (ETFs) recorded outflows for a second consecutive day. The asset has now retreated for four consecutive days, driven by declining odds that the CLARITY Act will be signed into law and growing concerns over potential Federal Reserve interest rate hikes. This combination of regulatory uncertainty and macroeconomic pressure has intensified selling pressure on the cryptocurrency.

Spot Bitcoin ETF outflows accelerated significantly, with funds losing over $240 million in assets on Friday following a $225 million loss the previous day. Consequently, the net weekly inflow stood at $33 million, a sharp decline from the previous week’s $75 million. BlackRock’s IBIT ETF led the exodus, shedding over $212 million on Friday, while Fidelity’s FBTC lost over $27 million. These figures signal a notable reduction in demand among American institutional investors.

The selling pressure coincided with deteriorating prospects for the CLARITY Act, legislation aimed at shifting crypto regulatory power from the SEC to the more lenient CFTC. Despite bipartisan support for key sections, opposition from Democrats and consumer watchdog groups has stalled progress. Critics argue current provisions fail to prevent President Donald Trump and his family members from issuing tokens, citing disclosures that Trump earned over $1.4 billion in crypto profits last year.

Market expectations for the CLARITY Act have soured considerably. Odds of the bill being signed into law have dropped to just 35% on Polymarket, down from 75% earlier this year. This regulatory ambiguity adds to the headwinds facing Bitcoin, which also faces resistance from macroeconomic factors. Odds that the Federal Reserve will hike interest rates this year have jumped to over 70%, driven by economic impacts from the ongoing US-Iran war. Historically, Bitcoin and other risk assets underperform in high-interest-rate environments.

What the Numbers Show

The divergence between recent weekly inflows and daily outflows highlights shifting investor sentiment. While the week still ended with a net positive inflow of $33 million, the magnitude of Friday’s $240 million outflow suggests accelerating capital flight. This trend is particularly concerning given that IBIT, typically a primary beneficiary of institutional interest, saw its largest single-day loss in the period. The simultaneous drop in CLARITY Act odds and rise in Fed hike probabilities creates a dual-threat scenario for risk assets.

Technically, Bitcoin’s weakness is reflected in its failure to hold above key resistance levels. Price action shows BTC retreated after hitting a crucial resistance level of $67,018, its highest point since June 15. This formation indicates a double-top pattern, a common reversal signal. Additionally, the coin found resistance at the 100-day Exponential Moving Average (EMA) and moved below the Supertrend indicator. As long as Bitcoin remains below the $67,018 resistance level, it is likely to stay under pressure. A breakout above this threshold would be required to signal further gains, potentially targeting the psychological level of $70,000.

Anthony Pompliano, CEO of Professional Capital Management, announced a debate with economist and Bitcoin critic Peter Schiff titled "Is Bitcoin a bubble?" scheduled for Thursday. The discussion aims to address the ongoing divergence in views regarding the cryptocurrency's value and future trajectory.

Previous Encounters

The two financial commentators last faced off in a June interview, during which Pompliano pressed Schiff to acknowledge that Bitcoin is unlikely to lose all its value. Schiff subsequently stated that while the price dropping to zero is "highly unlikely" due to widespread adoption, the asset remains worthless for all practical purposes.

Divergent Perspectives

Schiff has a long history of labeling Bitcoin a "bubble" and has reportedly declared the cryptocurrency 'dead' on multiple occasions. He advocates for gold as the premier safe-haven asset and has derided Bitcoin as lacking intrinsic value. Despite earlier expressing regret for not purchasing Bitcoin when he first learned about it, Schiff recently stated he would not buy it even if the price fell to $20,000.

Conversely, Pompliano maintains a bullish stance, emphasizing Bitcoin's role as a hedge against currency debasement. He has previously projected that Bitcoin could reach $1 million over the long term, contingent on factors such as government monetary policy.

Market Data

At the time of writing, Bitcoin was trading at $65,759.16, reflecting a decline of 0.43% over the last 24 hours.