Bitcoin Tumbles Amidst Global Market Sell-Off and Delayed Crypto Regulation

Bitcoin's price dropped by about 2% in a day marked by significant market turmoil. The South Korean stock index, Kospi, plummeted 11%, one of its worst days in years, affecting global risk assets.

The U.S. Senate delayed the Crypto Clarity Act to focus on a Russia sanctions bill and federal nominations, creating uncertainty for crypto regulation. This decision has market participants cautious ahead of the U.S. Federal Reserve's key interest rate announcement.

Ether and other tokens followed suit, with AI and layer-1 tokens hit hardest by the decline. Despite low volatility levels, bearish trends are emerging in futures and options markets.