Bitcoin faces a critical test at the $73,000 support level following the collapse of the Clarity Act and record ETF outflows, as traders await the Federal Reserve's interest rate policy update.
Bitcoin dipped 3.2% after the Clarity Act vote failed, but the decline was partially priced in, leaving key support at $73,000 and potential upside to $85,000 or downside to $66,000.
Ethereum dropped 5% and accounted for most of the $600 million in long liquidations, reflecting bearish market-wide sentiment.
Bitcoin retreated 3.2% after the U.S. Senate blocked the Clarity Act, triggering $600 million in market-wide long liquidations. Investors are now pivoting to the Federal Reserve's interest rate decision, with markets bracing for a potential hawkish stance from incoming Fed head Kevin Warsh.
The failure of the procedural vote effectively shelves the Clarity Act for the remainder of the year, removing the immediate prospect of a clear regulatory framework for U.S. crypto ventures.
The 200-day exponential moving average at $73,000 serves as the primary support level; a failure to hold this zone could lead to a decline toward $66,000.