Bitcoin Slumps Over 4% Amid Crypto Regulation Fears and Rising Bond Yields

Bitcoin plummeted over 4% on Tuesday as investors grappled with a crucial Senate vote on crypto legislation and surging oil prices.

The CLARITY Act, aimed at establishing a regulatory framework for digital assets, was set to face a procedural Senate vote. However, it appeared that the bill might not have secured the 60 votes needed to advance amid concerns from Senate Democrats.

Beyond Washington's influence, Bitcoin's decline can also be attributed to rising bond yields and oil prices. The 10-year Treasury yield reached nearly 20 years' highest level at over 5%, while crude oil prices surpassed $109 per barrel.