Bitcoin price has traded under pressure this week as traders shifted their focus to the White House’s internal March 1 deadline for progress on the CLARITY Act. The move followed heavy market activity after the US PPI climbed to 2.9%, adding new strain on risk assets. Large Bitcoin wallets continued to grow during the decline, while rising whale transfers suggested a volatile start to March. The market is now watching key price levels as regulatory and liquidity factors merge at a crucial moment. White House Deadline Places CLARITY Act at the Center of Market Attention The CLARITY Act remains a central topic for market participants as it aims to create clearer rules for digital assets. The bill has already passed in the House, and it is now moving slowly through the Senate. Lawmakers continue to debate issues such as whether platforms may reward users for holding stablecoins. Banks argue they could lose deposits under those terms. Source: Santiment JPMorgan said the market could regain strength later in the year if the bill passes by midyear. The bank said the Act could reshape market structure by reducing uncertainty and supporting wider institutional activity. Coinbase CEO Brian Armstrong also said talks are moving forward and that April is a possible target for approval. Ripple CEO Brad Garlinghouse shared a similar view. Concurrently, Polymarket odds for the bill rose from 44% to 67% after falling sharply earlier. Traders said the improved outlook reflected renewed belief in a workable agreement. Whale Activity Builds as Market Awaits Early March Reversal Signals Santiment reported a rise in whale transfers above $100,000 across Bitcoin, Ethereum, Tether, and the XRP Ledger. The firm said large spikes often appear near market turning points. It also expects whale activity to climb early in March. Bitcoin is also nearing 20,000 wallets holding at least 100 BTC. Santiment said the rise during price weakness can indicate accumulation. The firm noted that the percentage of supply held by major wallets has not moved widely, which has kept prices muted. Yet the growth in wallet numbers suggests coins continue moving into stronger hands as retail reduces exposure. Source: Santiment This pattern has appeared in past cycles during low-confidence phases that later supported recovery moves. Traders also expect a rise in whale count to continue through the CLARITY Act deadline. Liquidity Zones Shape Bitcoin Price Outlook After Recent Drop Bitcoin price falling under $66,000 saw $420 million in liquidations during the past day. According to Coinglass, the liquidity clusters formed between $68,000 and $72,000, which traders say could be swept if the price moves higher. A larger zone now sits at $63,000 to $66,000 on the downside after recent flows. Crypto analyst Jell said it is time for Bitcoin bulls to act near the current range. He said a close below $66,200 would remove near-term relief and return the market to the broader bear trend. Meanwhile, another analyst, Ardi, noted the open interest has fallen in clear stages during the recent decline, which has changed the way the market absorbs volatility. He noted that open interest was near $100 billion when Bitcoin traded at $126,000, then dropped to $65 billion at $96,000, and now sits near $45 billion in the current $60,000 to $67,000 range. He said each flush removed a layer of leverage from the market. Source: X As per him, the high open interest once created large liquidation clusters in every direction, and those clusters produced strong chain reactions during fast market moves. However, he said the smaller clusters now generate weaker reactions, which has produced slower and more controlled price movement. Consequently, the shift has created a market that grinds rather than collapses because fewer leveraged positions remain vulnerable to forced selling. Ardi said this trend may influence the broader Bitcoin price path because reduced leverage often leads to quieter trading periods before the next structural move. He said the market may continue to trade in a wide range until new leverage returns or a major catalyst appears, like the passage of the CLARITY Act on March 1st.
