Bitcoin Price Plummets Below $77,700 Amid FOMC Jitters

Bitcoin's price has plummeted below $77,700 as traders prepare for the Federal Reserve's FOMC interest rate decision tomorrow. The market is experiencing heavy pressure, with nearly 79,000 traders liquidated and total liquidations reaching $337.75 million in the past 24 hours.

The main reason behind Bitcoin's price drop today lies in two major U.S. events: a Senate procedural vote on the Digital Asset Market Clarity Act and the FOMC meeting tomorrow. The bill, which has faced strong opposition from banking groups over its stablecoin 'circuit breaker,' has reduced market hopes for its passage.

According to prediction market odds, the bill's passage now stands at 18%, down from 44% earlier. Additionally, markets are pricing in a 93% chance of a Fed rate hike, leading traders to reduce their exposure to Bitcoin.

Rising Brent crude oil prices are also contributing to Bitcoin's price drop. Brent crude has moved above $106 a barrel as Middle East tensions rise, pushing inflation higher and keeping Treasury yields elevated. Higher yields can pull money away from Bitcoin and other assets that do not generate regular income.