Bitcoin Price Plunges as Fed Rate Decision Looms

Bitcoin's price has fallen to around $75,600 over the past 24 hours due to various market factors. The US Senate's failed vote on the CLARITY Act and rising Treasury yields have weighed heavily on the cryptocurrency.

The proposed legislation aimed to establish a federal regulatory framework for digital assets, but its failure led to a significant price drop. Bitcoin fell to an intraday low of $74,913 after the vote.

The 10-year US Treasury yield reached 5.04% on September 15, its highest level since July 2007, before easing back. This increase in borrowing costs has also contributed to the decline in Bitcoin's price.

Leveraged positions were caught in the fall, with total crypto liquidations exceeding $500 million over the previous 24 hours. The Binance $BTC/USDT 24-hour liquidation heatmap shows a dense pocket of liquidation leverage near $74,500-$74,700 below the current price.

The Federal Reserve's interest rate decision is expected to be announced today, and investors are trying to determine whether it will lead to further tightening. A 25 basis point increase would take the federal funds target range from 3.50%-3.75% to 3.75%-4.00%.