Bitcoin Plunges Amidst Clarity Act Uncertainty and Hawkish Fed Outlook

The crypto market is experiencing a significant downturn, with Bitcoin trading at around $76,010 and down roughly 3.2% on the day.

This decline is largely attributed to the uncertainty surrounding the CLARITY Act, a bill that aims to clarify regulatory boundaries for digital assets in the United States.

The act's cloture vote, scheduled for 2:15 p.m. ET, has traders taking bets off the table and de-risking into it.

Prediction markets indicate an 11% chance of the CLARITY Act passing this year, leading to a sharp drop in odds from above 30% on Monday.

The market is also anticipating a possible rate hike by the Federal Reserve, with futures and prediction markets pricing an 85% to 91% chance of a 25 basis point increase.