The digital asset market faces a sharp correction as legislative hurdles in Washington dampen investor enthusiasm for a sustained year-end rally.

Bitcoin Retreats Toward $86,000 as Senate Delays Landmark Crypto Bill

WASHINGTON / NEW YORK — December 18, 2025

The cryptocurrency market experienced a cooling period on Wednesday as Bitcoin retreated from its psychological resistance level of $90,000. The world’s largest digital asset is currently changing hands between $86,000 and $87,000, marking a significant intraday decline.

This sudden shift in momentum follows a brief but spirited attempt to breach the $90,000 mark earlier in the week. Analysts suggest that while the market was primed for a breakout, the lack of immediate regulatory clarity has forced institutional and retail traders to reconsider their short-term positions.

Regulatory Gridlock in the U.S. Senate

The primary catalyst for the current bearish sentiment appears to be reports emerging from Capitol Hill. The U.S. Senate has reportedly delayed the consideration of key cryptocurrency framework legislation, effectively pushing any major voting or implementation to the 2026 legislative session.

This delay has caught the industry off guard. Many investors had priced in a more favorable regulatory environment following recent political shifts, expecting the “Lummis-Gillibrand” or similar bills to provide a clear pathway for stablecoin regulation and market oversight.

Market participants view this legislative stall as a “wait-and-see” signal from Washington. Without a federal mandate to define digital assets, the industry remains subject to the existing enforcement-led approach, which has historically heightened market volatility and investor anxiety.

Altcoins Feel the Pressure

The ripples of Bitcoin’s pullback are being felt across the broader ecosystem. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has mirrored Bitcoin’s descent, struggling to maintain its footing above the $3,200 support zone.

Other major “altcoins” including Solana (SOL) and Cardano (ADA) have also registered losses in the 4% to 7% range over the last 24 hours. This synchronized downturn suggests a broad exit from “risk-on” assets as traders move toward liquidity and stablecoins.

Trading volume across major exchanges like Binance and Coinbase spiked during the initial drop, indicating a high level of liquidations. Long positions—bets that prices would continue to rise—were hit particularly hard, totaling hundreds of millions of dollars in forced closures.

Analyzing the $90,000 Resistance

Technical analysts at DECODE THE CRYPTO note that the $90,000 level has become a formidable “wall” for Bitcoin. Profit-taking at this level was expected, but the added weight of the Senate’s decision amplified what might have otherwise been a healthy consolidation.

“We are seeing a classic ‘buy the rumor, sell the news’ scenario, except in this case, the news never arrived,” stated one senior market strategist. “The expectation was for a legislative win; the reality is another two years of regulatory limbo.”

The Relative Strength Index (RSI) for Bitcoin had recently entered overbought territory, suggesting that a correction was overdue. This pullback allows the market to reset, though the depth of the slide will depend on whether $85,000 can hold as a support level.

Despite the gloom, some veteran investors remain unfazed. They argue that Bitcoin’s underlying fundamentals—including ETF inflows and network security—remain robust. They view the Senate delay as a temporary hurdle rather than a fundamental flaw in the asset class.

Future Outlook and Global Impact

As the U.S. stalls, other jurisdictions may take the lead. The European Union’s MiCA regulations are already providing a framework that some suggest could attract capital away from American markets if the legislative vacuum persists in Washington.

Investors are now turning their attention to upcoming macroeconomic data, including consumer price index (CPI) reports and Federal Reserve commentary. These factors will likely dictate whether Bitcoin can mount another attempt at the $90,000 milestone before the year ends.

For now, the mood in the crypto “newsroom” is one of cautious observation. The industry has survived legislative delays before, but with institutional participation at an all-time high, the stakes for legal clarity have never been higher.

The situation remains fluid. As traders digest the implications of a 2026 timeline, the market prepares for a period of heightened sideways trading. Whether this is a momentary breather or the start of a deeper correction remains to be seen.

DISCLAIMER: Digital assets are highly volatile. The information provided by DECODE THE CRYPTO is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research or consult a professional advisor before making any investment decisions.