Bitcoin Price Plunges as CLARITY Act Fails to Advance Ahead of Fed Decision
The Bitcoin price has fallen over 3% in recent days, trading below $76,000 at the time of writing on Wednesday. This drop comes after the CLARITY Act failed to advance in the US Senate, which was seen as a major setback for US crypto regulation.
Bitunix Analyst Dean Chen told FXStreet that the failure of the CLARITY Act is a significant blow to regulatory clarity and could lead to a delay in institutional investment. However, he noted that this does not necessarily mean a permanent reversal of adoption.
The mixed signals among institutional investors are also contributing to the uncertainty. SoSoValue data shows that spot ETFs recorded an outflow of $450.33 million on Tuesday following an inflow of $160.04 million on Monday.
As Bitcoin traders await the Federal Reserve's interest rate decision and Fed Chairman Kevin Warsh's words at the press conference, market participants are cautious amid heightened Middle East tensions. Analyst Chen believes that the Fed's forward guidance will have a greater influence on Bitcoin than the rate hike itself.