Crypto Market Crashes Amid Delayed CLARITY Act and Fed Rate Hike Fears
The cryptocurrency market experienced a significant decline on July 28, with Bitcoin (BTC) falling nearly 3% and dropping below $65,000. Ethereum (ETH) also slumped by almost 4%, losing ground below $1,900. However, Binance Coin (BNB) remained relatively resilient, only falling by around 1%. Other major coins saw varying degrees of decline.
The market's downturn was attributed to the delayed passage of the CLARITY Act in the US Senate. According to a CoinDesk report, Majority Leader John Thune stated that the bill may not be passed before the summer recess, which begins mid-July and ends late September. The crypto industry had viewed August 7 as an important window for the bill's passage.
The delay shattered market expectations for regulatory dividends and triggered profit-taking and safe-haven sell-offs by institutional funds and retail longs. Additionally, the Federal Reserve's upcoming interest rate decision meeting from July 28 to 29 added to market anxiety over monetary policy direction.