Fed Decision and Crypto Regulation Vote Loom Large for Bitcoin Market

The cryptocurrency market is bracing for its biggest week of 2026 as the Federal Reserve's interest rate decision and the Senate's cloture vote on the CLARITY Act take center stage.

Markets assign an 85-90% probability that the Fed will hike rates by 25 basis points, following contrasting economic data. The latest data shows the US economy added 162,000 jobs last month, triple expectations, and producer inflation accelerated to 5.4% annually.

The combination of strong employment numbers and rising inflation has strengthened the Fed's case for tighter policy. Bitcoin and other altcoins have already demonstrated their sensitivity to this shift, dropping sharply following the latest economic data.