Bitcoin Dives as Senate Vote Looms

Bitcoin took a hit on Tuesday as traders pulled back from risk ahead of a crucial Senate vote and the Federal Reserve's interest rate decision. The price of Bitcoin fell below $77,000 before recovering to around $76,000 after dropping by as much as 3% in morning trading.

The selloff was not limited to Bitcoin, with broader markets feeling the pressure. US stock indexes opened lower while Treasury yields rose to their highest levels since 2023 and oil prices climbed on concerns about Middle East supply.

The Senate is set to hold a cloture vote on the Digital Asset Market CLARITY Act at 2:15 p.m. ET, which requires 60 votes to formally open debate on the legislation. A failed vote would delay comprehensive US crypto market structure legislation until after the midterm elections.