Bitcoin Plunges Amid CLARITY Act Vote Uncertainty and Fed Rate Hike Fears

Bitcoin's price has dropped to $77,012.38, down 1.1% over 24 hours, as traders liquidate over $100 million in leveraged positions ahead of the CLARITY Act cloture vote at 2:15 PM ET.

The immediate catalyst for this dip includes news that Democrats rejected the Republican CLARITY Act draft due to ethics concerns, adding fresh uncertainty just hours before the vote.

Analyst Michaël van de Poppe believes Bitcoin is now looking to sweep recent lows amid a volatile stretch shaped by both the CLARITY Act vote and this week's FOMC meeting. He said that anything below $75,700 'essentially a steal' for Bitcoin.

Vikram Subburaj, CEO of Giottus.com, thinks Bitcoin's real test may come from the Fed rather than the Senate. A 25-basis-point rate hike is already largely priced in with a 93% probability, and Subburaj warns against excessive leverage around the Fed decision.