Bitcoin’s decline to a monthly low of $75,000 has intensified market jitters, with broader cryptocurrency losses following the US Senate’s rejection of the CLARITY Act. The vote, held on Tuesday evening, marked a setback for legislative efforts to clarify regulatory frameworks for digital assets, amplifying uncertainty ahead of the Federal Reserve’s interest rate decision later tonight.
CoinMarketCap data showed Bitcoin’s market cap fell to $1.520 trillion, while the total crypto market cap dropped 2.3% to $2.6 trillion. Altcoins faced steep declines, with XRP trading below $1.30 after an 8% fall and Ethereum retreating to $2,400. Bitcoin’s dominance over altcoins rose to 59%, reflecting its relative resilience amid broader market turbulence.
The Senate’s rejection of the CLARITY Act’s cloture vote has raised questions about the pace of regulatory clarity for the sector. Analysts note that the outcome, combined with recent US CPI data and the Fed’s pending rate decision, has heightened volatility. The central bank’s move later tonight could further test market stability, with investors closely watching for signals on inflation and monetary policy.
XLM, the token for Stellar, fell 10% to $0.175, underscoring the sector’s sensitivity to macroeconomic and political developments. Traders remain cautious as the interplay between regulatory uncertainty, macroeconomic data, and central bank policy continues to shape crypto markets.
Written by Oliver Grant
Markets Desk
