Crypto Stocks Plunge Ahead of Clarity Act Vote and Fed Rate Decision

Crypto stocks took a hit in premarket trading on Tuesday ahead of two key events: the congressional vote on the Clarity Act and the Federal Reserve's rate decision on Wednesday.

The Clarity Act aims to establish a regulatory framework for cryptocurrencies, which has previously stalled due to concerns about ethics and illicit finance safeguards. Bitcoin dropped 2.9% to $76,833.83, while another cryptocurrency fell 3.8% to $2,471.74.

Crypto exchange plummeted 4.7% in premarket trading. Mining companies also declined, with falling between 1.6% and 2.2%.

The market's reaction may be attributed to the uncertainty surrounding the Clarity Act's passage and the Fed's rate decision, which could impact the overall market sentiment.