Bitcoin Price Pressure Rises Amid Regulatory Setback and Fed Rate Hike Fears
The recent pressure on Bitcoin and cryptocurrencies has been exacerbated by a combination of factors. Firstly, US lawmakers failed to advance a key regulatory bill, which fell short in a Senate vote. This setback has dampened industry sentiment, creating uncertainty for traders who were hoping for clearer rules. The broader cryptocurrency market weakened alongside Bitcoin, with steep declines recorded in the US session.
Bitcoin's price reacted swiftly to the news, falling 4% in US trading before stabilizing around $75,900 in London hours later. The token had been holding near $77,000 heading into the week, with traders eyeing $76,000 as a key support level and $83,000 as resistance.
The Federal Reserve's potential rate hike is also exerting downward pressure on cryptocurrencies. Markets are pricing an 86%-87% chance of a 25-basis-point increase ahead of the Sept. 16 decision. A hawkish tone or higher long-term rate projections would likely push Treasury yields up, straining non-yielding assets like Bitcoin.