Bitcoin, crypto stocks decline ahead of CLARITY Act vote and Fed decision
Crypto markets and related stocks fell on Tuesday as investors anticipated key developments from Washington: a Senate cloture vote on the CLARITY Act and the Federal Reserve’s interest-rate decision. Bitcoin dropped nearly 2.2%, Ether declined by almost 1.8%, and Solana lost over 1% in value, with total crypto market cap falling to $2.61 trillion. Derivatives traders also faced losses as around $384 million in positions were liquidated within a day. Crypto-linked stocks experienced sharper declines amid uncertainty surrounding the CLARITY Act negotiations. Coinbase fell nearly 6%, Robinhood dropped over 3.8%, and Circle lost more than 8%. Senate Republicans rejected a Democratic counteroffer late Monday, which sought stronger crypto ethics rules and changes to DeFi policy. A cloture vote on advancing the bill is scheduled for Tuesday at 2:15 p.m. Investors are also watching the Fed’s decision Wednesday, with most economists expecting another rate hike of 25 basis points—its first since July 2023—which could further pressure risk assets like crypto.
Tickers: $BTC $COIN $ETH $HOOD $HSDT $SOL