Bitcoin slipped below $63,000 on July 31, landing at its lowest price in roughly 10 days after a one-two punch that crypto bulls really didn’t need. Coinbase posted a revenue miss that sent its shares tumbling after hours, and the Clarity Act, the legislative effort meant to finally sort out who regulates what in crypto, hit a wall in the Senate.

Meanwhile, Strategy Inc., the corporate Bitcoin whale formerly known as MicroStrategy, added its own underwhelming earnings to the pile.

Coinbase’s quarter came up short

Coinbase reported second-quarter revenue of $1.22 billion. That number was down 19% year over year and missed analyst estimates of roughly $1.3 billion. The company also posted a net loss of $359.5 million.

Investors responded accordingly. Coinbase shares dropped between 7% and 14% in after-hours trading on July 30, depending on the moment you checked.

Coinbase is often treated as a proxy for the health of the broader crypto market. Trading volumes drive Coinbase’s business, and lower volumes mean fewer people are buying and selling crypto.

The Clarity Act stalls at the worst possible time

The Clarity Act, which is designed to draw clear jurisdictional lines between the SEC and CFTC over digital assets, ran into renewed trouble in the Senate during the final days of July. State-level opposition and tight time constraints ahead of the August recess combined to slow the bill’s progress to a crawl.

The Senate’s August recess creates a hard deadline problem. Lawmakers leaving Washington without advancing the bill means weeks of inaction.

Strategy Inc. adds to the gloom

Strategy Inc., which holds one of the largest corporate Bitcoin treasuries in the world, reported its own set of disappointing results. The company’s earnings added to the negative sentiment already swirling around major corporate Bitcoin holders.

What this means for investors

Coinbase’s revenue miss is particularly telling for anyone trying to gauge market participation. A 19% year-over-year revenue decline suggests that the trading activity fueling the crypto market has meaningfully contracted.

Traders should watch for two things in the coming weeks. First, whether Bitcoin can hold the $60,000 level, which has served as psychological support in prior selloffs. Second, any signals from Senate leadership about whether the Clarity Act gets prioritized when Congress returns from recess.