Bitcoin Price Plummets on Failed Clarity Act Vote and Rate Hike Fears
Bitcoin's price has taken another hit, falling by an ugly 2% since yesterday to sit at $75,500. However, a bigger development in less than 12 hours could change how we see our Bitcoin price prediction. The US Senate failed to advance the Clarity Act, a market structure bill that traders had leaned on for a break from an 11-month malaise.
Crypto markets took a fresh beating after the failed vote, with Bitcoin falling 4% in US trading before stabilizing near $75,500 in London hours. More than $525 million in bullish leveraged bets got liquidated in the last 24 hours, leaving a forced unwind that tends to leave scar tissue on short-term sentiment.
Pratik Kala, portfolio manager at Apollo Crypto, said 'Until investors gain more certainty on the path of rates globally, risk assets would remain under pressure.' The combination of a regulatory setback plus rate uncertainty is the real story behind the tape, and it raises the question every desk is now asking: how much of a hike is actually priced in?