Crypto Market Plunges Amid Clarity Act Failure and Rate Hike Expectations
The cryptocurrency market took a significant hit on Tuesday as investors reacted to the failure of the CLARITY Act in the Senate and growing expectations of an interest-rate hike. Bitcoin sank below $74,000, while Ethereum dived below $2,400. XRP and Dogecoin also plummeted sharply.
The CLARITY Act's failure to gain the 60 votes needed to advance led to a market downturn, with cryptocurrency-related stocks suffering losses as well. Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closed down 5.36% and 8.39%, respectively.
The global cryptocurrency market capitalization stood at $2.58 trillion, down 3.07% in the last 24 hours. Over $660 million was erased in cryptocurrency liquidations, with $566 million coming from bullish long positions, according to Coinglass data.