Bitcoin Breaks Key Support Amid Tightening Monetary Policy
Bitcoin has dropped out of its recent range and fallen below $76,700, but the decline was relatively contained. This week marked a failed Senate vote on the CLARITY Act, which aimed to restructure the crypto market.
The Federal Reserve announced its decision today, pricing in a rate hike. Even without further action, policy has already tightened autonomously due to core inflation falling to 2.4% and the federal funds rate remaining at 3.75% since December 2025.
New demand is absent: on-chain capital inflows have halted for 27 consecutive days, ETFs turned net negative, stablecoin growth has stalled, and corporate treasuries stopped buying. Options traders shifted to buying downside protection within hours of the Senate vote, with a max pain sitting at $72,000.
Most resting buy orders are concentrated within 10% of the current price, with thinner liquidity deeper down. If the range breaks, the next target is $71,300, followed by the $62,000, $65,000 zone.