Bitcoin Plunges Below $75k Amid Senate Fails and Fed Rate Hike

The price of Bitcoin fell below $75,000 after the US Senate failed to pass the Clarity bill, which was seen as a foundation for clearer rules regulating digital assets in the United States. The Federal Reserve's decision to raise interest rates for the first time in three years also had a negative impact on the crypto market.

According to Bloomberg, over two days shares of major crypto companies lost up to 20%. Coinbase shares fell by about 16%, while Circle shares dropped by around 20%.

The failure of the Clarity bill and the Fed's interest rate hike are a double blow to the crypto market. Rate hikes typically create unfavorable conditions for Bitcoin, with only two out of ten instances showing an increase in price one month later, according to Bloomberg.