Bitcoin Trapped in Range as Markets Watch Fed and Clarity Act
Bitcoin's price has remained range-bound this week as investors await key policy catalysts. The Federal Reserve's policy decision scheduled for Wednesday is a major concern, with many expecting unchanged interest rates but watching for signals of tighter monetary policy through future rate hikes.
The Fed's hawkish tone has already put pressure on Bitcoin, causing it to slip towards the $63,000 level due to rising oil prices and renewed inflation concerns. Despite a fragile pause, this led to a pullback across cryptocurrencies before some losses were pared.
Meanwhile, the US Clarity Act, which would establish a regulatory framework for digital assets, is facing uncertain progress in the Senate. The bill's slowdown has been attributed to debate over ethics provisions linked to President Donald Trump's and his family's extensive crypto interests.
Interestingly, it was revealed that Trump generated at least $1.4 billion in crypto-related income last year, surpassing Coinbase's earnings of $1.2 billion. This unexpected development has reduced confidence in the bill advancing on its original timetable.