Regulatory Hurdles, Fed Fears Weigh on Bitcoin Price

Bitcoin's price has taken another hit as investors await the Federal Reserve's interest-rate decision. The cryptocurrency fell 4% in US trading, and declined further in Asia before stabilising at around $75,700. This decline is partly due to the failure of a key regulatory bill in the Senate, which had been expected to lend legitimacy to crypto.

According to Pratik Kala, a portfolio manager at digital-asset hedge fund Apollo Crypto, 'the Clarity Act adds additional headwinds in the short term for a move up in Bitcoin'. He notes that until investors gain more certainty on the path of rates globally, risk assets will remain under pressure.

Some $560 million in bullish bets on cryptocurrencies were unwound in the last 24 hours. However, positioning in Bitcoin showed some resilience, with more bets on the original cryptocurrency to rise than to fall.