Crypto Market Falls as Clarity Act Stalls and Rate Hike Looms
The cryptocurrency market fell after the Clarity Act stalled in the Senate on Tuesday. The bill, which aimed to provide long-awaited market-structure rules for digital assets, was considered unlikely to pass due to partisan tensions.
Traders had been pinning their hopes on the bill as a way to break an 11-month rut in the market. However, with inflation concerns and surging Treasury yields also weighing on the market, many were expecting a rate hike from the Fed, which would typically dampen appetite for risk assets.
The price of Bitcoin steadied near $75,900 early Wednesday morning after Tuesday's drop. Institutional interest in crypto was also waning, with US-listed spot Bitcoin ETFs recording net outflows topping $450 million on Tuesday, marking the largest one-day withdrawal since June.