Crypto Market Slumps on Bill Rejection and Rate Hike

The crypto market took a hit as the Senate failed to advance the Clarity Act, a bill that was seen as a potential catalyst for growth. The industry was dealt another blow when the Federal Reserve raised interest rates for the first time in three years.

The rejection of the Clarity Act comes at a challenging time for Bitcoin, which is already facing waning retail-investor interest and higher interest rates. As a result, the price of Bitcoin has sold off, along with other crypto bellwethers such as Coinbase Global Inc. and Circle Internet Group Inc.

The Federal Reserve's rate hike has historically proved unfavorable for non-yielding assets like Bitcoin. The move is likely to reduce liquidity in the market, making it even tougher for cryptocurrencies to attract investors.