Bitcoin retreats below $76,000 as hopes for the CLARITY Act fade and markets prepare for a likely Federal Reserve interest rate hike this week.
Bitcoin price falls as hopes of CLARITY Act passage fade and Fed rate hike expectations rise.
Coinbase's stock is pressured by the crypto market decline and fading regulatory progress on the CLARITY Act.
Ethereum faces similar downward pressure from stalled crypto regulation and macroeconomic concerns.
Bitcoin dropped 4% to trade below $76,000 on Tuesday as legislative momentum for the CLARITY Act stalled in the Senate. Investors are bracing for a potential Federal Reserve rate hike, with markets pricing in a 92% probability of an increase. The regulatory uncertainty has dampened sentiment across the digital asset sector, impacting major industry players like Coinbase.
The bill aims to establish a comprehensive federal regulatory framework for digital asset markets, providing the legal certainty that developers and financial institutions require to build blockchain infrastructure.
Markets are currently pricing in a 92% chance of an interest rate hike, though analysts suggest a dovish tone from the Fed could still provide a catalyst for a crypto recovery.