Bitcoin Price Slumps Amid CLARITY Act Vote Failure, Federal Rate Increase
Bitcoin's price has been hovering near $76,200 after a volatile week following the failed CLARITY Act vote and the Federal Reserve's rate increase. According to data from crypto.news, Bitcoin had recovered from an intraday low of $75,065 but still lost around 4% over the past seven days.
The U.S. Senate's failure to advance the Digital Asset Market CLARITY Act reduced the prospect of Congress establishing a federal crypto market structure before the November midterm elections. The proposed legislation aimed to define how the Securities and Exchange Commission and Commodity Futures Trading Commission would divide oversight of digital assets.
Macroeconomic conditions added to the pressure, with the Federal Reserve raising its target rate by 25 basis points to a range of 3.75% to 4.00%. Higher rates can reduce demand for non-yielding and risk-sensitive assets by raising returns available from government debt and strengthening the U.S. dollar.